Missing Links in Multiple Trade Networks

Rachele Foschi (), Massimo Riccaboni () and Stefano Schiavo
Additional contact information
Rachele Foschi: IMT School for Advanced Studies Lucca

No 5/2013, Working Papers from IMT School for Advanced Studies Lucca

Abstract: In this paper we develop a network model of international trade which is able to replicate the concentrated and sparse nature of trade data. Our model extends the preferential attachment (PA) growth model to the case of multiple networks. Countries trade a variety of goods of different complexity. Every country progressively evolves from trading less sophisticated to high-tech goods. The probability to capture more trade opportunities at a given level of complexity and to start trading more complex goods are both proportional to the number of existing trade links. We provide a set of theoretical predictions and simulative results. A calibration exercise shows that our model replicates the same concentration level of world trade as well as the sparsity pattern of the trade matrix. Moreover, we find a lower bound for the share of genuine missing trade links. We also discuss a set of numerical solutions to deal with large multiple networks.

Keywords: Multiple Networks; Trade Networks; Preferential Attachment; Missing Trade; Innovation and Trade (search for similar items in EconPapers)
JEL-codes: F14 F43 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2013-09, Revised 2013-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in EIC working paper series

Downloads: (external link)
http://eprints.imtlucca.it/1658/1/EIC_WP_5_2013.pdf First version, 2013 (application/pdf)

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: https://EconPapers.repec.org/RePEc:ial:wpaper:5/2013

Access Statistics for this paper

More papers in Working Papers from IMT School for Advanced Studies Lucca Contact information at EDIRC.
Bibliographic data for series maintained by Leonardo Mezzina ().