Trading patterns within and between regions: an analysis of Gould-Fernandez brokerage roles

TL;DR

This paper analyzes regional trade patterns in the International Trade Network using Gould Fernandez brokerage roles, revealing that countries' roles are mainly driven by network centralisation and clustering, especially the presence of hubs.

Contribution

It introduces an analysis of brokerage roles in the ITN across different technological levels, highlighting the influence of network centralisation and clustering on regional trade roles.

Findings

Roles are driven by centralisation patterns.

Clustering patterns significantly influence brokerage roles.

Hubs play a crucial role in regional and global trade patterns.

Abstract

This study examines patterns of regionalisation in the International Trade Network (ITN). The study makes use of Gould Fernandez brokerage to examine the roles countries play in the ITN linking different regional partitions. An examination of three ITNs is provided for three networks with varying levels of technological content, representing trade in high tech, medium tech, and low-tech goods. Simulated network data, based on multiple approaches including an advanced network model controlling for degree centralisation and clustering patterns, is compared to the observed data to examine whether the roles countries play within and between regions are a result of centralisation and clustering patterns. The findings indicate that the roles countries play between and within regions are indeed a result of centralisation patterns and chiefly clustering patterns; indicating a need to examine the presence of hubs when investigating regionalisation and globalisation patterns in the modern global economy.