Mon, 21 May 2012 19:34:16 GMT - q-fin updates on arXiv.org
It is common wisdom that no nation is an isolated economic island. All
nations participate in the global economy and are linked together through trade
and finance. Here we analyze international trade network (ITN), being the
network of import-export relationships between countries. We show that in each
year over the analyzed period of 50 years (since 1950) the network is a typical
representative of the ensemble of maximally random networks. Structural
Hamiltonians characterizing binary and weighted versions of ITN are formulated
and discussed. In particular, given binary representation of ITN (i.e. binary
network of trade channels) we show that the network of partnership in trade is
well described by the configuration model. We also show that in the weighted
version of ITN, bilateral trade volumes (i.e. directed connections which
represent trade/money flows between countries) are only characterized by the
product of the trading countries' GDPs, like in the famous gravity model of
trade.