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Community structure in the World Trade Network based on communicability distances
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Community structure in the World Trade Network based on communicability distances

Author

Listed:
  • Paolo Bartesaghi

    (University of Milano - Bicocca)

  • Gian Paolo Clemente

    (Università Cattolica del Sacro Cuore)

  • Rosanna Grassi

    (University of Milano - Bicocca)

Abstract

In this paper, we investigate the mesoscale structure of the World Trade Network. In this framework, a specific role is assumed by short- and long-range interactions, and hence by any suitably defined network-based distance between countries. Therefore, we identify clusters through a new procedure that exploits Estrada communicability distance and the vibrational communicability distance, which turn out to be particularly suitable for catching the inner structure of the economic network. The proposed methodology aims at finding the distance threshold that maximizes a specific quality function defined for general metric spaces. Main advantages regard the computational efficiency of the procedure as well as the possibility to inspect intercluster and intracluster properties of the resulting communities. The numerical analysis highlights peculiar relationships between countries and provides a rich set of information that can hardly be achieved within alternative clustering approaches.

Suggested Citation

  • Paolo Bartesaghi & Gian Paolo Clemente & Rosanna Grassi, 2022. "Community structure in the World Trade Network based on communicability distances," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 17(2), pages 405-441, April.
    • Handle: RePEc:spr:jeicoo:v:17:y:2022:i:2:d:10.1007_s11403-020-00309-y
    DOI: 10.1007/s11403-020-00309-y
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    More about this item

    Keywords

    Network analysis; Communicability distance; Community detection; World Trade Network;
    All these keywords.

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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