eprintid: 1658
rev_number: 9
eprint_status: archive
userid: 6
dir: disk0/00/00/16/58
datestamp: 2013-09-10 09:35:32
lastmod: 2013-09-10 09:35:32
status_changed: 2013-09-10 09:35:32
type: monograph
metadata_visibility: show
creators_name: Foschi, Rachele
creators_name: Riccaboni, Massimo
creators_name: Schiavo, Stefano
creators_id: rachele.foschi@imtlucca.it
creators_id: massimo.riccaboni@imtlucca.it
creators_id: 
title: Missing Links in Multiple Trade Networks
ispublished: pub
subjects: HB
subjects: HF
divisions: EIC
full_text_status: public
monograph_type: imt_eic_working_paper
keywords: JEL Codes: F14, F43.  -  Keywords: Multiple Networks, Trade Networks, Preferential Attachment, Missing Trade, Innovation and Trade
abstract: In this paper we develop a network model of international trade which is able to replicate the concentrated and sparse nature of trade data. Our model extends the preferential attachment (PA) growth model to the case of multiple networks. Countries trade a variety of goods of
different complexity. Every country progressively evolves from trading less sophisticated to high-tech goods. The probability to capture more trade opportunities at a given level of complexity and to start trading more complex goods are both proportional to the number of existing trade links. We provide a set of theoretical predictions and simulative results. A calibration exercise shows that our model replicates the same concentration level of world trade as well as the sparsity pattern of the trade matrix. Moreover, we find a lower bound for the share of genuine missing trade links. We also discuss a set of numerical
solutions to deal with large multiple networks.
date: 2013-09
date_type: published
number: 5
publisher: IMT Institute for Advanced Studies Lucca
pages: 21
institution: IMT Institute for Advanced Studies Lucca
issn: 2279-6894
citation:   Foschi, Rachele and Riccaboni, Massimo and Schiavo, Stefano  Missing Links in Multiple Trade Networks.  EIC working paper series  #5/2013    IMT Institute for Advanced Studies Lucca    ISSN 2279-6894.      
document_url: http://eprints.imtlucca.it/1658/1/EIC_WP_5_2013.pdf