nep-net New Economics Papers
on Network Economics
Issue of 2012‒11‒03
six papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. The International Trade Network in Space and Time By Angela Abbate; Luca De Benedictis; Giorgio Fagiolo; Lucia Tajoli
  2. Isolating the Network Effect of Immigrants on Trade By Aleksynska, Mariya; Peri, Giovanni
  3. "Intra-Firm Trade Network in Mitsubishi Corporation, 1922-28" (in Japanese) By Tetsuji Okazaki
  4. Germs, Social Networks and Growth By Fogli, Alessandra; Veldkamp, Laura
  5. The Breakdown of Connectivity Breakdowns By Hoernig, Steffen
  6. Ordered Weighted Averaging in Social Networks. By Manuel Förster; Michel Grabisch; Agnieszka Rusinowska

  1. By: Angela Abbate; Luca De Benedictis; Giorgio Fagiolo; Lucia Tajoli
    Abstract: This paper studies how the structure of the International Trade Network (ITN) changes in geographical space and along time. We employ geographical distance between countries in the world to filter the links in the ITN, building a sequence of sub-networks, each one featuring trade links occurring at similar distance. We then test if the topological properties of ITN subnetworks change as distance increases. We find that distance strongly impacts, in non-linear ways, the topology of the ITN. We show that the ITN is disassortative at long distances while it is assortative at short ones. Similarly, the main determinant of the overall high ITN clustering level are triangular trade triples between geographically close countries. This means that trade partnership choices are differentiated over different distance ranges. Such evidence robustly arises over time and after one controls for the economic size and income of trading partners.
    Keywords: International Trade, Network Analysis, Distance
    Date: 2012–10–22
  2. By: Aleksynska, Mariya (ILO International Labour Organization); Peri, Giovanni (University of California, Davis)
    Abstract: Within the migration-trade nexus literature, this paper proposes a more carefully defined measure of migration business networks, and quantifies its impact on bilateral trade. Using cross-sectional data and controlling for the overall bilateral stock of migrants, the share of migrants employed in managerial/business-related occupations has a strong additional effect on trade, and especially on exports. Those immigrants should be the ones directly involved in the diffusion and transmission of information relevant for companies trading with other countries. Their presence is found to increase the volume of trade beyond the already known effect of immigrants or highly educated immigrants. When we control for the presence of highly educated immigrants, the share of immigrants in business network occupations shows a particularly large effect on trade in differentiated goods. Specifically, we find that highly educated individuals in business-related occupations are those contributing to export by the largest margin. Business network effects seem particularly important in stimulating exports to culturally different countries, such as those with different legal origin.
    Keywords: migration, international trade, business networks, differentiated goods
    JEL: F14 F16 F22
    Date: 2012–10
  3. By: Tetsuji Okazaki (Faculty of Economics, University of Tokyo)
    Abstract: This paper presents the intra-firm trade network in Mitsubishi Corporation (Mitsubishi Shoji) in the 1920s. In this period, Mitsubishi Co. established a global branch network to expand trades. Using original documents of Mitsubishi Co., we obtained the data on the trade flow between every pair of the headquarters and branches in 1922 and 1928. It was confirmed that there was a dense global intra-firm trade network, and that some branches as well as the headquarters played the role of hubs in the network. Also, we found that the structure of the network substantially changed over time for the headquarters to have a central position.
    Date: 2012–10
  4. By: Fogli, Alessandra; Veldkamp, Laura
    Abstract: Does the pattern of social connections between individuals matter for macroeconomic outcomes? If so, how does this effect operate and how big is it? Using network analysis tools, we explore how different social structures affect technology diffusion and thereby a country’s rate of technological progress. The network model also explains why societies with a high prevalence of contagious disease might evolve toward growth-inhibiting social institutions and how small initial differences can produce large divergence in incomes. Empirical work uses differences in the prevalence of diseases spread by human contact and the prevalence of other diseases as an instrument to identify an effect of social structure on technology diffusion.
    Keywords: development; disease; economic networks; growth; pathogens; social networks; technology diffusion
    JEL: E02 I1 O1 O33
    Date: 2012–10
  5. By: Hoernig, Steffen
    Abstract: We show that the prediction of a strategic connectivity breakdown under a receiving-party-pays (RPP) system and discrimination between on- and off-net prices does not hold up once more than two networks are considered. Indeed, equilibria with finite call and receiving prices exist for a large and realistic range of call externality values. This allows regulation of termination rates to achieve the socially optimal retail pricing structure under RPP.
    Keywords: Connectivity breakdown; Mobile network competition; Receiving party pays; Termination rates
    JEL: L13 L51
    Date: 2012–10
  6. By: Manuel Förster (Centre d'Economie de la Sorbonne & Université Catholique de Louvain - CORE); Michel Grabisch (Centre d'Economie de la Sorbonne - Paris School of Economics); Agnieszka Rusinowska (Centre d'Economie de la Sorbonne - Paris School of Economics)
    Abstract: We study a stochastic model of influence where agents have yes-no inclinations on some issue, and opinions may change due to mutual influence among the agents. Each agent independently aggregates the opinions of the other agents and possibly herself. We study influence processes modelled by ordered weighted averaging operators. This allows to study situations where the influence process resembles a majority vote, which are not covered by the classical approach of weighted averaging aggregation. We provide an analysis of the speed of convergence and the probabilities of absoption by different terminal classes. We find a necessary and sufficient condition for convergence to consensus and characterize terminal states. Our results can also be used to understand more general situations, where ordered weighted averaging operators are only used to some extend. Furthermore, we apply our results to fuzzy linguistic quantifiers.
    Keywords: Social network, influence, convergence, speed of convergence, consensus, ordered weighted averaging operator, fuzzy linguistic quantifier.
    JEL: C7 D7 D85
    Date: 2012–08

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