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Hubs and authorities in the world trade network using a weighted HITS algorithm.

Tsuyoshi Deguchi1, Katsuhide Takahashi2, Hideki Takayasu3

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The United States led global trade authority, but China has emerged as the top trade hub. Economic globalization reshaped world trade networks, impacting major economies like the US, China, EU, and Japan.

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Area of Science:

  • Economics
  • Network Science
  • International Trade

Background:

  • The period 1992-2012 witnessed rapid economic globalization.
  • Understanding the dynamics of economic hubs and authorities within the world trade network (WTN) is crucial.

Purpose of the Study:

  • To investigate the evolving economic hubs and authorities in the WTN from 1992 to 2012.
  • To analyze the impact of globalization on the trade positions of major economies.

Main Methods:

  • Utilized a weighted hyperlink-induced topic search (HITS) algorithm.
  • Calculated weighted HITS hub and authority values for countries within the WTN.
  • Defined authority as imports from hubs and hub as exports to authorities.

Main Results:

  • The United States held the largest economic authority from 1992-2012, with a decline post-2001.
  • China became the largest hub and increased its authority, transitioning to a global market.
  • European countries showed intra-EU trade focus, decreasing their global hub/authority values.
  • Japan's authority grew slowly, while its hub value declined, indicating a shift towards a balanced economy.

Conclusions:

  • The WTN experienced significant shifts in economic power and influence during the globalization era.
  • China's rise as a hub and growing authority signifies a major transformation in global trade.
  • Regional trade patterns, like within the EU, and national economic transitions, like Japan's, influence global network positions.