The interconnected wealth of nations: Shock propagation on global trade-investment multiplex networks.

ABSTRACT: The increasing integration of world economies, which organize in complex multilayer networks of interactions, is one of the critical factors for the global propagation of economic crises. We adopt the network science approach to quantify shock propagation on the global trade-investment multiplex network. To this aim, we propose a model that couples a spreading dynamics, describing how economic distress propagates between connected countries, with an internal contagion mechanism, describing the spreading of such economic distress within a given country. At the local level, we find that the interplay between trade and financial interactions influences the vulnerabilities of countries to shocks. At the large scale, we find a simple linear relation between the relative magnitude of a shock in

SUBMITTER: Starnini M 

PROVIDER: S-EPMC6739386 | biostudies-literature | 2019 Sep

REPOSITORIES: biostudies-literature