'Small-World' Trade Networks Associated with Economic Growth
University of Arkansas, FayettevilleNew research by University of Arkansas economists decodes the mystery of what transforms a network of interconnections among firms into a single organism that functions as an economic powerhouse. By examining the relationship between product-clusters in international trade and their connection to accelerated economic growth at the country level, researchers found that the way in which a country’s exported products are connected to each other and to other products in the global-trade network – rather than mere participation in global trade – determines whether or how much a country will achieve accelerated economic growth.