This article investigates whether cointegration approach can be the basis of an international trade network and whether such a network is relevant for analysis. We fit data on international-trade flows with a cointegration specification using cointegration approach. In addition, we use the force algorithm of Kamada and Kawai for replicating the weighted international trade network. We find that the cointegration approach in combination with the Kamada and Kawai algorithm successfully replicates the weighted international trade network structure. The presented methodological toolkit allowed to distribute the countries-participants of the network into separate groups (communities). We also identify the specific network participants - network-drivers which have specific management functions in the international trade network. Driver countries are able to change the system configuration with a relatively small impact on them. This means that to change the network configuration, it is advisable to act on the driver nodes.

Original languageEnglish
Title of host publicationProceedings of the 34th International Business Information Management Association Conference (IBIMA)
EditorsKS Soliman
PublisherIBIMA
Pages4440-4447
Number of pages8
StatePublished - 2019
EventThe 34th IBIMA Conference - Мадрид , Spain
Duration: 13 Nov 201914 Nov 2019
Conference number: 34th
https://ibima.org/accepted-paper/management-potential-of-an-international-trade-network-based-on-cointegration-analysis/

Conference

ConferenceThe 34th IBIMA Conference
Country/TerritorySpain
CityМадрид
Period13/11/1914/11/19
Internet address

    Research areas

  • world trade, complex networks of international trade, complex weighted network, World Trade Web, cointegration, network-core, network-drivers, ECONOMIC NETWORKS

ID: 62155680