Economics at your fingertips  

Modeling complex network patterns in international trade

Peter Herman

Review of World Economics (Weltwirtschaftliches Archiv), 2022, vol. 158, issue 1, No 5, 127-179

Abstract: Abstract This paper examines the role of complex network patterns in determining international trade. The author proposes two empirical approaches to better identify the influences that the full structure of the trade network has on individual bilateral flows. The first uses gravity models that incorporate novel network covariates. The second uses exponential random graph models (ERGMs) that analyze trade from a network perspective. Estimates from both types of models provide strong evidence that network dependencies are influential determinants at both the intensive and extensive margin. Direct comparisons of the two approaches indicate that each can outperform the other at capturing and replicating certain types of network features. These results indicate that complex network patterns are an important determinant of trade, that gravity models can capture much of this dependency even if not explicitly controlled for, and that empirical network models such as ERGMs can be valuable tools for better capturing certain network patterns.

Keywords: Trade; Networks; Gravity; ERGM; Extensive margin (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10290/PS2

DOI: 10.1007/s10290-021-00429-y

Access Statistics for this article

Review of World Economics (Weltwirtschaftliches Archiv) is currently edited by Paul Bergin, Holger Görg, Cédric Tille and Gerald Willmann

More articles in Review of World Economics (Weltwirtschaftliches Archiv) from Springer, Institut für Weltwirtschaft (Kiel Institute for the World Economy) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2024-03-31
Handle: RePEc:spr:weltar:v:158:y:2022:i:1:d:10.1007_s10290-021-00429-y