Author(s)

Nicholas Simon Gonchar, Olena Petrivna Dovzhyk, Anatoly Sergiyovych Zhokhin, Wolodymyr Hlib Kozyrski, Andrii Pylypovych Makhort

Bogolyubov Institute for Theoretical Physics of NAS of Ukraine, Kiev, Ukraine.

We have elaborated a new method to study international trade based on the theory of economic equilibrium. Here we give developed algorithms to construct equilibrium states. Within the framework of the theory of economic equilibrium, we suggested a mechanism explaining the recession phenomenon by the exchange mechanism breakdown. For this purpose, we introduced the recession level parameter. The paper gives our study of goods exchange nature between countries of the G20. It turned out that in each studied year, the trade between the G20 countries was not in equilibrium. The equilibrium state of trade between the G20 countries was highly degenerated and far from ideal equilibrium. Also, we have calculated the recession level parameter for each equilibrium state and it showed that the international currency was strengthening during 2016-2019.

Equilibrium State, Ideal Equilibrium, Recession Phenomenon, Generalized Equilibrium Price Vector, International Trade

Gonchar, N. , Dovzhyk, O. , Zhokhin, A. , Kozyrski, W. and Makhort, A. (2022) International Trade and Global Economy. Modern Economy, 13, 901-943. doi: 10.4236/me.2022.136049.