Work detail

International Trade Network

Author: Mgr. Milan Hanousek
Year: 2014 - summer
Leaders: doc. PhDr. Ladislav Krištoufek Ph.D.
Work type: Finance, Financial Markets and Banking
Language: English
Pages: 84
Awards and prizes: M.A. with distinction from the Dean of the Faculty of Social Sciences for an extraordinarily good masters diploma thesis.
Abstract: The object of this thesis is to analyze the structure, function and dynamics of international trade. We will show that the international trade network (ITN) can be looked upon as the weighted network obeying the scale invariance and the universality. The standard (indeed the only) model used to examine the international trade is the gravity model. The name comes from an analogy with Newton’s law of gravitation, thus the model can be seen as the older example of the interaction between economics and physics. The model acquired its great popularity, because it reproduces well observed trade flows between countries. On the other hand, the model has some serious and irreducible limitations which emerged especially after the publication of several empirical analyses showing the topology of the ITN. For that reason we will try to develop a new dynamical model in the context of the “network” approach.


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