Economic Trading Susceptibility: Constructing Networks of Mutual Influence through the Fitness of Countries

Abstract

The emergence of economic blocks and the level of influence countries exert on each other are fundamental features of the 21st century globally interconnected economy. However, limited quantitative research exists measuring the level of influence among countries and quantitatively determining economic blocks. This research develops a method to quantify the mutual influence of countries by making use of relatively standard procedures for complex networks in order to assemble non-trivial networks of influences and to identify symbiotic relationships. The methods are of significant help to an enhanced understanding of the global politics of trading and associations. Moreover, we develop the Mutual Influence Robustness (MIR) metric to work together with the Economic Fitness metric to provide some level of predictive modeling for the trends and future paths of countries. Our key results show the existence of a mutually influencing network around East and Southeast Asia, developed North America, and the northern and Iberian countries. Moreover, we find that it is possible to do some level of path predictability for the fitness and mutual influence of countries.