The effects of globalisation on a network's nodes of different structural characteristics: a heterogeneous agent simulation

Globalization is much more than an economic phenomenon and has non-economic consequences (Fischer, 2003). Studies on globalization follow two main lines [Li, Pang and Ng (2007)]. While most proglobalization advocates (for example, Feldstein 2000) examine the impact of external or openness factors, anti-globalization advocates focus on economic sectors that have lost out in the process of globalization (Wallach and Woodall 2004; Stiglitz 2002). Many globalization indices have been constructed. Generally, they are based on a number of external economic factors, typically trade and foreign direct investment, while scarce attention has been given to the internal factors. This is true both for the effect of such factors on the capability of a country to be in the global market and on the effect of globalization on them. Vice versa, in an evolutionary context these factors can be interrelated with both present and future welfare of the country. Indigenous factors that are positive from an international integration can complement the successful performance of economic openness and be integrated in the process. Those that are marginal for such a process would remain more and more marginalized. To understand these aspects a network approach could help. But, while it is well known that growth models of the informatics’ type “are quite inappropriate as models of the growth of social networks, for a number of reasons” [Jin, Girvan, and Newman (2001)] few points are considered about economic network and especially global economic network. Of course, neither the characteristics of the informatics’ type of models or that of growth models of social networks, seem to be adequate for dealing with the evolution of economic networks, especially in a context of globalization, for a number of reasons. The topic most considered about globalization is that of research and knowledge. Very few works about economic globalization as the evolution of a network seem to exist. One of the few exceptions is the work by Kali and Reyes (2006). They combine data on international trade linkages with network methods to examine the global trading system as an interdependent complex network, and suggest new network based measures of international economic integration. They apply existing ideas in the network literature for studying and measuring globalization. Our work will attempt to deeply address the study of network structures that can be at the basis of globalization. A simulation model, based on NetLogo will be used to show which characteristics must be considered for a new node to be attracted from a pre-existing network and when a link can be broken. We will take specific account of worker-consumer agents and their different characteristics – marginal and integrated agents. Globalization implies that firms and individuals are interrelated in a multilevel network. At production level, firms look for partners, but they also look for workers. At the distribution and resource level firms look for customer while workers look for work. And so on. The Bianconi & Barabási (2001) competition [the rate at which nodes in a network increase their connectivity depend on their fitness to compete for links] seems to apply in this case, but given the multilayered networking some deeper consideration of its consequences on the structure, robustness, and especially the effect on the welfare of marginal workers seems possible. This deepening could try to clarify the usual Janos-characterization of the debate about globalization. Moreover, it could help to a better understanding of the insurgence of financial extreme events in the globalization scenario. Are they more or less possible; is the network configuration still presenting a power low both in the case of production and of distribution-resource network and what could be the possible consequences on the financial sector?