Machine learning models to measure the importance of Geopolitical Tensions on Trade

Costanza Bosone & Paolo Giudici

Socio-Economic Planning Sciences2026https://doi.org/10.1016/j.seps.2026.102473article
AJG 2ABDC C
Weight
0.50

What the paper says

We contribute to the international trade literature by extending the analysis of geopolitical tensions into an out-of-sample predictive framework. We use the adaptive nature of the Random Forest to verify whether the rising importance of geopolitics provides a forecasting signal without imposing parametric constraints. We find that it does. Geopolitical distance emerges as a dominant predictor of trade flows, consistently outranking traditional policy variables such as tariffs and RTAs—a result we validate against regularized linear benchmarks. For policymakers, this suggests that forecasting models accounting only for physical distance and traditional cost factors may suffer from systematic bias. • Proposes a random forest model to study trade flows. • Interpret results using classical gravity models.

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https://doi.org/https://doi.org/10.1016/j.seps.2026.102473

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@article{costanza2026,
  title        = {{Machine learning models to measure the importance of Geopolitical Tensions on Trade}},
  author       = {Costanza Bosone & Paolo Giudici},
  journal      = {Socio-Economic Planning Sciences},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1016/j.seps.2026.102473},
}

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Machine learning models to measure the importance of Geopolitical Tensions on Trade

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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