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Analysis of Agri-Food Trade Structures

To Promote Agri-Food Trade Networks

In the Islamic Countries

49

Figure 25: Graphical Representation of the Intra-OIC Trade Network in Fish Products, Largest

Flow Only, 2016.

Source: Authors´.

To flesh out the above findings, it is possible to calculate degree centrality scores for the intra-

OIC trade network. In this case, it is possible proceed at a fully disaggregated level, looking at

the leading products identified at the start of this Chapter. Given that the analysis is dealing with

a sub-network, it is only feasible to calculate degree centrality, which has a convenient

substantive interpretation in terms of the level of export diversification. Eigenvector centrality

is not calculated, as it only has a meaningful interpretation when the full network (i.e., global

trade) is considered.

Another way of looking at the data is through the lens of network analysis. Specifically, Table 10

uses out degree centrality to examine changes in geographical diversification of exports at the

product-level over the last decade. It considers intra-OIC trade flows only. For the African Group,

there is diversification for some product lines (higher out degree centrality), but other product

categories show increasingly concentrated exports. By contrast, the Arab Group and the Asian

Group show reasonably uniform evidence of export diversification across product categories.

From the perspective of the trade network, these changes mean that for the two latter groups,

their network is becomingmore decentralized over time, while for Africa there is some evidence

of increasing dependence on a small number of markets. Both dynamics are consistent with the

patterns described above in terms of the regional breakdown of export destinations.

Taking these results together confirms that the nature of OIC trade networks varies substantially

across sectors and products. Although there is a strong intra-regional component to intra-OIC

trade flows, there are also important linkages across regions. Geography is an important

determinant of trade flows, but policy also plays a role. Most preferential integration

arrangements affecting agricultural trade are regional in nature, so they tend to reinforce the

dynamic for relatively close countries to trade more. This dynamic is an issue for the future