This paper estimates for 28 product groups a characteristic parameter that reflects the topological structure of its trading network. Using these estimates, it then
describes how the structure of international trade has evolved during the 1980-2000 period. Thereafter, it demonstrates the importance of networks in international
trade by explicitly accounting for their scaling properties when testing the prediction
of the Heckscher-Ohlin model that factor endowment differentials determine bilateral trade
flows. The results suggest that differences in factor endowments increase
bilateral trade in goods that are traded in "dispersed" networks. For goods that are
traded in "concentrated" networks, factor endowment differentials are less important