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An Interdependence Model of Comparative Advantage by Network Theory —In Case of Dyads in International Trade Networks—

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Submitted:

14 March 2022

Posted:

15 March 2022

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Abstract
Since the 1970s, researchers in international relations have asserted that the enhancement of interdependence between nations can reduce conflicts among them (Keohane and Nye 1973). Thus, interdependency between nations is regarded as desirable for the stability of the countries' networks. On the other hand, there has been no confirmation of empirical data on the benevolent effects of interdependency on the nations' networks. This article aims to analyze the concept of interdependence into reciprocity and dependence, leading to quantifying both of them. To assess the usefulness of this approach, the empirical analysis of trade relations among five countries, namely, THE U.S.., China, Germany, Japan, and Korea from 1992 to 2020 was empirically analyzed with the aid of reciprocity index (R) and dependency index (D).
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Subject: Business, Economics and Management  -   Economics
Copyright: This open access article is published under a Creative Commons CC BY 4.0 license, which permit the free download, distribution, and reuse, provided that the author and preprint are cited in any reuse.
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