Study On Economic Integration In G20Based On Social Network

Globalization and integration are two important characteristics in today’s worldeconomic development. On the one hand, economic ties become more close around theworld, any country cannot isolate from the influence of other countries. The nationaleconomic interdependence, mutual penetration, becomes an indivisible wholly organic.On the other hand, the world economic development growing instability and uncertainty,economic fluctuations becomes more severe. So, G20is formed and developed, thepurpose is to seek cooperation, promote international financial stability and sustainedeconomic growth.Economic integration is the noticed important theoretical and realistic problems ininternational economics，but empirical research has been lacking. Social networkanalysis is an effective way to study international economic integration, the dynamicevolution of the international economic system can be understood well with the help ofsocial network theory.G20economic and trade relations can be regarded as an interaction and mutualinfluence of the network. As a node of the network, the change of any country’seconomy or changes in trade policy, will directly or indirectly affect other countries inthe network. This article from the system perspective, and respectively construct theunweighted network and weighted network of G20merchandise trade by takingcountries as nodes, trade relationships between different countries as edges, and tradevolumes as edge weights. Then, using social network theory to measure trade relationsand trade flow structure of G20, analysis of the development economic integrationprocess and its results, and analysis the influence of the economic integration ofmember countries economic growth mechanism have been conducted respectively.The results show that: first, The G20economic integration degree is not high, inthe medium level, but there is the development trend of integration. Specifically, during2000-2010, the trade networks of the overall density is increasing, the economic linksbetween the countries is becoming more and more closely; The point centralization andbetweenness centralization of trade network has been decreased, economic dependencebetween countries is increasing; each subgroup within and between subgroups ofdensity is gradually increased, powerful promoted the economic cooperation andcoordination between member states.Second, G20economic integration has a positive effect on members’ economic growth. The higher relative centrality of a country, show that participation in the higherthe degree of economic integration, the better contribution to its economic growth. In2005, member states involved in the economic integration of the economic growthcontribution rate is0.012%, and the contribution rate has reached0.025%in2010.