Unfolding the Complexity of the Global Value Chain: Strength and Entropy in the Single-Layer, Multiplex, and Multi-Layer International Trade Networks

Author(s)

Alves, Luiz G. A. ^[1] ; Mangioni, Giuseppe ^[2] ; Rodrigues, Francisco A. ^{[1, 3, 4]} ; Panzarasa, Pietro ^[5] ; Moreno, Yamir ^{[6, 7, 8]}

Affiliation

^[1] Univ Sao Paulo, Inst Math & Comp Sci, BR-13566590 Sao Carlos, SP - Brazil

^[2] Univ Catania, Dipartimento Ingn Elettr Elettron & Informat, I-95125 Catania - Italy

^[3] Univ Warwick, Ctr Complex Sci, Coventry CV4 7AL, W Midlands - England

^[4] Univ Warwick, Math Inst, Gibbet Hill Rd, Coventry CV4 7AL, W Midlands - England

^[5] Queen Mary Univ London, Sch Business & Management, London E1 4NS - England

^[6] Univ Zaragoza, Dept Theoret Phys, E-50009 Zaragoza - Spain

^[7] Univ Zaragoza, Inst Biocomputat & Phys Complex Syst, E-50009 Zaragoza - Spain

^[8] Inst Sci Interchange Fdn, I-10126 Turin - Italy

• Document type: Journal article
• Source: Entropy; v. 20, n. 12 DEC 2018.
• Web of Science Citations: 2

Abstract

The worldwide trade network has been widely studied through different data sets and network representations with a view to better understanding interactions among countries and products. Here we investigate international trade through the lenses of the single-layer, multiplex, and multi-layer networks. We discuss differences among the three network frameworks in terms of their relative advantages in capturing salient topological features of trade. We draw on the World Input-Output Database to build the three networks. We then uncover sources of heterogeneity in the way strength is allocated among countries and transactions by computing the strength distribution and entropy in each network. Additionally, we trace how entropy evolved, and show how the observed peaks can be associated with the onset of the global economic downturn. Findings suggest how more complex representations of trade, such as the multi-layer network, enable us to disambiguate the distinct roles of intra- and cross-industry transactions in driving the evolution of entropy at a more aggregate level. We discuss our results and the implications of our comparative analysis of networks for research on international trade and other empirical domains across the natural and social sciences. (AU)

• FAPESP's process: 13/07375-0 - CeMEAI - Center for Mathematical Sciences Applied to Industry
• Grantee: Francisco Louzada Neto
• Support Opportunities: Research Grants - Research, Innovation and Dissemination Centers - RIDC
• FAPESP's process: 16/16987-7 - A complex system approach to urban planning and development
• Grantee: Luiz Gustavo de Andrade Alves
• Support Opportunities: Scholarships in Brazil - Post-Doctoral
• FAPESP's process: 16/25682-5 - Information spreading in complex networks
• Grantee: Francisco Aparecido Rodrigues
• Support Opportunities: Regular Research Grants