An International Trade Comparison of Two Supposedly Different Sectors

Abstract

According to modern international economics, and especially evolutionary economic geography, a country industry characteristics influence the structure of its international trade. Following this view, this chapter moves from the following basic research issue: if two sectors are very different according to market, economic and technological aspects, should we expect that its corresponding international trade networks are as well markedly different? Aerospace and Common Earth Materials seem quite different in those respects, and thus, they are good candidates to explore that research issue. Its comparison allowed to evidence and discuss some methodological problems in applying social network analysis, and especially in using it to compare different networks. In particular, it is underlined the difficulty to handle valued networks when value variance is very high, and to combine three groups of indicators: simple, hierarchy focused, and strictly topological. The comparative analysis employed 32 indicators either at network or sub-network level, like for core-periphery analysis, which indicate clear and marked diversity only in terms of hierarchical degree and topological aspects. A first conclusion is that the two examined trade networks are following a similar path and, excepted for few indicators, they seem to be rather similar even at a deeper structural level. Hence, one (or more) of three implications can be drawn: 1) the global value networks corresponding to the two sectors are not so markedly different; 2) they are substantially different but such a diversity does not produce a significant difference in terms of international trade networks; 3) there are some methodological problems that prevent differences to be evidence and require a more refined and modified comparison. A second conclusion is that trade patterns of both sectors are rather unstable.