Evolution of community structure in the world trade web

TL;DR

This paper analyzes the evolution of global trade networks from 1948 to 2005, revealing complex patterns of globalization and network structure changes using network analysis tools.

Contribution

It applies network analysis to the world trade web over a long period, highlighting the evolution of trade communities and their structural dynamics.

Findings

Mixed evidence for globalization trends.

Identification of trade 'islands' and their evolution.

Network structure varies over thresholds and time.

Abstract

In this note we study the bilateral merchandise trade flows between 186 countries over the 1948-2005 period using data from the International Monetary Fund. We use Pajek to identify network structure and behavior across thresholds and over time. In particular, we focus on the evolution of trade "islands" in the a world trade network in which countries are linked with directed edges weighted according to fraction of total dollars sent from one country to another. We find mixed evidence for globalization.