Structure and formation of top networks in international trade, 2001–2010

Abstract

We propose the construction of the international trade network based on top trade relations (i.e., country i is linked to country j if j is i's top trade partner). The constructed network captures most important relations in international trade. The overall network displays a tree-like hierarchical structure. It is organized around global central countries (especially the US, China, and Germany) under which there are more levels of local centers. We develop a model that uses country behavior in local triadic environment to account for the formation of such network structure. The census of triads confirms the applicability of this model.