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Elsevier, Physica A: Statistical Mechanics and its Applications, 1(382), p. 16-21, 2007

DOI: 10.1016/j.physa.2007.02.005

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Clusters or networks of economies? A macroeconomy study through gross domestic product

Journal article published in 2007 by Marcel Ausloos, R. Lambiotte ORCID
This paper is available in a repository.
This paper is available in a repository.

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Abstract

We study correlations between web-downloaded gross domestic product (GDP)'s of rich countries. GDP is used as wealth signatures of the country economical state. We calculate the yearly fluctuations of the GDP. We look for forward and backward correlations between such fluctuations. The correlation measure is based on the Theil index. The system is represented by an evolving weighted network, nodes being the GDP fluctuations (or countries) at different times. In order to extract structures from the network, we focus on filtering the time delayed correlations by removing the least correlated links. This percolation idea-based method reveals the emergence of connections, that are visualized by a branching representation. Note that the network is made of weighted and directed links when taking into account a delay time. Such a measure of collective habits does not readily fit the usual expectations, except if an economy globalization framework is accepted. (C) 2007 Published by Elsevier B.V.