229770

Agent-Based Modelling for International Trade

Article

Last updated: 04 Jan 2025

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Abstract

The system of the world economy has recently become more efficient and integrated due to the globalization effect. This effect results in driving the progression of both the technology and the liberalization of trade and capital markets. The technological improvements reduce the costs of transportation and communication between the countries. On the other hand, liberalization of trade and capital markets reduces the forms of unfair foreign competition.  The main objective of this study is to design an agent-based modeling that unravels the role of technological improvement in changing the international trade structure between the developed and developing countries. The study also tackles the effect of capital mobility on the structure of international trade. These two objectives are achieved through proposing different scenarios. Furthermore, the proposed agent-based modeling is based on two assumptions, the Samuelson's analysis of outsourcing between the developed and developing countries assumption and the capital mobility assumption. Traditionally, technological progress is considered the cornerstone of international trade flows. The general pattern of trade flows is from the developed country, to the developing country. Applying a set of ABM scenarios on the international trade schemes revealed a general pattern of trade flows from the developing country to the developed country. This was attributed to the gradual technological shocks introduced to the developing country's industrial sector.  Furthermore, the results showed that the developing countries possess the capability of turning into new economic powers in all fields shall they properly invest in technological progress.

DOI

10.21608/cfdj.2022.229770

Keywords

International Trade theories, Agent-Based Modeling, Technological Gap Theory, Comparative Advantage Theory, Capital Mobility

Authors

First Name

ahmed A.okasha

Last Name

okasha

MiddleName

-

Affiliation

قسم الحوسبة الاجتماعيه، کلية الاقتصاد والعلوم السياسية، جامعة القاهره، القاهرة، مصر

Email

aokasha@feps.edu.eg

City

الجيزه

Orcid

-

First Name

asmaa mounir

Last Name

EL-refaee

MiddleName

-

Affiliation

قسم الحوسبة الاجتماعية، کلية الاقتصاد والعلوم السياسية، جامعة القاهرة، القاهرة، مصر

Email

asmaa.mounir@feps.edu.eg

City

الجيزه

Orcid

-

First Name

سلوى محمد عبدالعزيز

Last Name

عبدالعزيز

MiddleName

-

Affiliation

کلية الاقتصاد والعلوم السياسية، جامعة القاهره، القاهره، مصر

Email

salwa_abdelaziz@feps.edu.eg

City

الجيزه

Orcid

-

Volume

3

Article Issue

2

Related Issue

32919

Issue Date

2022-07-01

Receive Date

2022-04-08

Publish Date

2022-07-01

Page Start

585

Page End

618

Print ISSN

2682-3403

Online ISSN

2682-4531

Link

https://cfdj.journals.ekb.eg/article_229770.html

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https://cfdj.journals.ekb.eg/service?article_code=229770

Order

17

Type

المقالة الأصلية

Type Code

1,242

Publication Type

Journal

Publication Title

المجلة العلمية للدراسات والبحوث المالية والتجارية

Publication Link

https://cfdj.journals.ekb.eg/

MainTitle

Agent-Based Modelling for International Trade

Details

Type

Article

Created At

22 Jan 2023