What is an economic network?

Simply defined, the economic network consists of individuals, groups, organizations, communities or whole nations that work together in favor of all networks. The aim of using all competitive advantages, assets and resources of members is to collectively increase the production capacity and economic growth of its members. Such networks may have fixed membership, rotating membership or constantly changing membership depending on specific network goals. The aim is to increase the position of members on the market. Participants of such networks will focus on the charge, association of knowledge and resources and investigating markets to reveal economic opportunities.

Many industries are based on the economic network, especially from the industrial revolution and the emphasis of national economies around the world. These networks arose in a direct response to problems with the effectiveness resulting from cultivating more and less personal. Since networks can collectively provide products and services, this trend continued to the 21st century to alleviate theNky large economic structures, including industries and networks of all sizes from individuals to nations in response to the globalized economy. Information has become the central, most valuable item in the economy, and economic networks are usually created to combine, share and respond to this information.

While the collective economic network, such as the Association of Nations Southeast Asia (ASEAN), can also benefit from individuals. However, the advantages for individuals are very dependent on the network of connections between these individuals. The network structure often determines the outcome of potential economic relations, usually determines how much information it has changed and for what purposes. Other impacts of the network structure include the exchange of goods and services and the exchange of financial resources. Despite the importance of structure in the economic network, the development of theory and methods to analyze these structures often lack and is at best basic.

Yet, modern economic systems are consistently heading towards economic networks. These networks, which create a global system, constantly interact with each other through the interdependence of both knowledge and actions. Through such interdependence, however, these networks may, when exposed to distrust, insufficient transparency and pairing of banking and investment projects. Economic networks intensify the impact of these exposures and risks, including economic failures and opportunistic actions that were supposed to be advantages rather than a beneficial network. Given these factors, research focused on optimizing the structure of economic networks is considered to be Essential to set economic sustainability and ensure the stability of the system.