Abstract

International trade offers a unique environment for the study of large-scale networks for two reasons. First, the structure of international trade intrinsically resembles that of a network: countries are connected to each other by trade linkages; individual exporting firms are connected to other importing firms in foreign countries; migrants personally know people from various countries. Second, most international transactions and transnational migrations are recorded, by customs or immigration authorities, so detailed data are readily available for the empirical study of those large-scale networks. This chapter reviews recent advances in international trade and the economic networks and suggests promising avenues for research on the role networks play in international trade. The author describes both important empirical studies of networks in trade, and powerful theoretical tools that can be used to analyze the micro and aggregate properties of large-scale networks.