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With globalization, countries are more connected than before by trading flows, which currently amount to at least 36 trillion dollars. Interestingly, approximately 30-60 percent of global exports consist of intermediate products. Therefore,…

General Finance · Quantitative Finance 2017-02-08 Peiteng Shi , Jiang Zhang , Bo Yang , Jingfei Luo

Understanding international trade is a fundamental problem in economics -- one standard approach is via what is commonly called the "gravity equation", which predicts the total amount of trade $F_ij$ between two countries $i$ and $j$ as $$…

Trading and Market Microstructure · Quantitative Finance 2017-03-08 Yuke Li , Tianhao Wu , Nicholas Marshall , Stefan Steinerberger

The international trade is one of the classic areas of study in economics. Nowadays, given the availability of data, the tools used for the analysis can be complemented and enriched with new methodologies and techniques that go beyond the…

Physics and Society · Physics 2021-04-23 Diego Kozlowski , Viktoriya Semeshenko , Andrea Molinari

International trade fluxes evolve as countries revise their portfolios of trade products towards economic development. Accordingly products' shares in international trade vary with time, reflecting the transfer of capital between distinct…

Trading and Market Microstructure · Quantitative Finance 2018-01-16 Matthieu Barbier , D. -S. Lee

This paper investigates how economic shocks propagate and amplify through the input-output network connecting industrial sectors in developed economies. We study alternative models of diffusion on networks and we calibrate them using…

General Finance · Quantitative Finance 2014-04-02 Martha G. Alatriste Contreras , Giorgio Fagiolo

The process of European integration resulted in a marked increase in transnational economic flows, yet regional inequalities along many developmental indicators remain. We analyze the unevenness of European economies with respect to the…

Economics · Quantitative Finance 2017-11-08 Balazs Vedres , Carl Nordlund

Despite global efforts to harmonize international trade statistics, our understanding of digital trade and its implications remains limited. Here, we introduce a method to estimate bilateral exports and imports for dozens of sectors…

General Economics · Economics 2024-07-25 Viktor Stojkoski , Philipp Koch , Eva Coll , Cesar A. Hidalgo

An important challenge in several disciplines is to understand how sudden changes can propagate among coupled systems. Examples include the synchronization of business cycles, population collapse in patchy ecosystems, markets shifting to a…

Physics and Society · Physics 2015-11-12 Charles D. Brummitt , George Barnett , Raissa M. D'Souza

The main goal of the paper is to extract the aggregate demand and aggregate supply shocks in Greece, Ireland, Italy and Portugal, as well as to examine the correlation among the two types of shocks. The decomposition of the shocks was…

General Economics · Economics 2020-07-23 Ionut Jianu

The interdependent nature of the global economy has become stronger with increases in international trade and investment. We propose a new model to reconstruct the international trade network and associated cost network by maximizing…

Physics and Society · Physics 2018-06-05 Yuichi Ikeda , Hiroshi Iyetomi

Recent global food trade disruptions have evidenced how local shocks can cascade into global security threats. While the capacity of food systems to absorb spillovers depends heavily on its underlying trade networks, few studies quantify…

Physics and Society · Physics 2026-03-03 Ariadna Fosch , Alberto Aleta , Roger Cremades , Yamir Moreno

The interconnected European Electricity Markets see considerable cross-border trade between different countries. In conjunction with the structure and technical characteristics of the power grid and its operating rules, the corresponding…

Physics and Society · Physics 2019-08-09 Mirko Schäfer , Fabian Hofmann , Hazem Abdel-Khalek , Anke Weidlich

Nestedness has traditionally been used to detect assembly patterns in meta-communities and networks of interacting species. Attempts have also been made to uncover nested structures in international trade, typically represented as bipartite…

We analyze export data aggregated at world global level of 219 classes of products over a period of 39 years. Our main goal is to set up a dynamical model to identify and quantify plausible mechanisms by which the evolutions of the various…

Economics · Quantitative Finance 2016-09-20 Michele Caraglio , Fulvio Baldovin , Attilio L. Stella

We study the role and drivers of persistence in the extensive margin of bilateral trade. Motivated by a stylized heterogeneous firms model of international trade with market entry costs, we consider dynamic three-way fixed effects binary…

Econometrics · Economics 2021-07-27 Julian Hinz , Amrei Stammann , Joschka Wanner

In this paper, we design two chapters to discuss trade dynamics with heterogeneous fluctuations, contributing new insights to macroeconomic issues related to international trade. In the first chapter, we model general exchange rate…

Econometrics · Economics 2026-03-11 Yongheng Hu

In the paper we analyse dependence structures among international trade flows of major conventional weapons from 1952 to 2016. We employ a Network Disturbance Model commonly used in inferential network analysis and spatial econometrics. The…

Applications · Statistics 2018-03-12 Michael Lebacher , Göran Kauermann

Despite the increasing integration of the global economic system, anti-dumping measures are a common tool used by governments to protect their national economy. In this paper, we propose a methodology to detect cases of anti-dumping…

General Economics · Economics 2022-07-13 Luca Barbaglia , Christophe Croux , Ines Wilms

Recent studies highlight economic complexity's role in mitigating fiscal crises, often measured via an economy's trade structure. Trade, however, is just one facet of an economy's structure and omits critical innovative activities like…

General Economics · Economics 2024-11-05 Goran Hristovski , Gjorgji Gockov , Viktor Stojkoski

We develop a model in which country-specific tariffs shape trade flows, prices, and welfare in a global economy with one homogeneous good. Trade flows form a Directed Acyclic Graph (DAG), and tariffs influence not only market outcomes but…

Theoretical Economics · Economics 2025-04-08 Paolo Pin