Structural interactions in global trade

We provide a methodological framework for investigating global trade networks that distinguish between categories of goods. We introduce a multi-layer network version of the Lantner diffusion model, in which each layer represents a specific good and each node corresponds to a country. By establishing several mathematical results involving structural alterations of the network, and by leveraging interaction indices, we show how to quantify structural interactions between categories of goods and offer recommendations for decision-makers designing embargoes against target countries.