Assessing Systemic Trade Interconnectedness: An Empirical Approach
Electronic Access:
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Summary:
The paper focuses on systemically important jurisdictions in the global trade network, complementing recent IMF work on systemically important financial sectors. Using the IMF's Direction of Trade Statistics (DOTS) database and network analysis, the paper develops a framework for ranking jurisdictions based on trade size and trade interconnectedness indicators using data for 2000 and 2010. The results show a near perfect overlap between the top 25 systemically important trade and financial jurisdictions, suggesting that these ought to be the focus of risk-based surveillance on cross-border spillovers and contagion. In addition, a number of extensions to the approach are developed that can provide a better understanding of trade dynamics at the bilateral, regional, and global levels.
Series:
Working Paper No. 2011/214
Subject:
Exports Financial contagion Financial sector policy and analysis International trade
English
Publication Date:
September 1, 2011
ISBN/ISSN:
9781463902964/1018-5941
Stock No:
WPIEA2011214
Pages:
24
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