Reducing Trade Inequality: A Network-Based Assessment

International trade, the network that underpins globalization, shows an extreme inequality. Despite efforts of multilateral organizations to foster a more fair world through trade agreements, it is hard to assess the effect of these changes on such a complex system. We have measured, using numerical simulation on a recently published network model, the impact of simple policies to boost trade chances among the weakest economies. Results suggest that global inequality may be reduced improving trade among low-income economies.

[1]  Kai A. Konrad,et al.  Collective memories on the 2010 European debt crisis , 2021, European Union Politics.

[2]  Michael Mitzenmacher,et al.  A Brief History of Generative Models for Power Law and Lognormal Distributions , 2004, Internet Math..

[3]  Michael D. Ward,et al.  Gravity's Rainbow: A dynamic latent space model for the world trade network , 2013, Network Science.

[4]  Javier García-Algarra,et al.  A stochastic generative model of the World Trade Network , 2019, Scientific Reports.

[5]  Linyuan Lu,et al.  Link Prediction in Complex Networks: A Survey , 2010, ArXiv.

[6]  A. Vespignani,et al.  The architecture of complex weighted networks. , 2003, Proceedings of the National Academy of Sciences of the United States of America.

[7]  L. Ceriani,et al.  The origins of the Gini index: extracts from Variabilità e Mutabilità (1912) by Corrado Gini , 2012 .

[8]  A. Subramanian,et al.  The Missing Globalization Puzzle: Evidence of the Declining Importance of Distance , 2007 .

[9]  N. Taleb,et al.  Gini Estimation Under Infinite Variance , 2017, Physica A: Statistical Mechanics and its Applications.

[10]  Albert,et al.  Emergence of scaling in random networks , 1999, Science.

[11]  P. Carmody.  Assembling effective industrial policy in Africa: an agenda for action , 2017 .

[12]  Giorgio Fagiolo,et al.  Null models of economic networks: the case of the world trade web , 2011, 1112.2895.

[13]  L. Tajoli,et al.  The World Trade Network , 2011 .

[14]  J. U. Mora.  La Alianza del Pacífico y Mercosur: evidencias de convergencia económica , 2016 .