IDEAS home Printed from https://ideas.repec.org/a/eee/phsmap/v471y2017icp576-591.html
   My bibliography  Save this article

Global industrial impact coefficient based on random walk process and inter-country input–output table

Author

Listed:
  • Xing, Lizhi
  • Dong, Xianlei
  • Guan, Jun

Abstract

Input–output table is very comprehensive and detailed in describing the national economic system with lots of economic relationships, which contains supply and demand information among industrial sectors. The complex network, a theory and method for measuring the structure of complex system, can describe the structural characteristics of the internal structure of the research object by measuring the structural indicators of the social and economic system, revealing the complex relationship between the inner hierarchy and the external economic function. This paper builds up GIVCN-WIOT models based on World Input–Output Database in order to depict the topological structure of Global Value Chain (GVC), and assumes the competitive advantage of nations is equal to the overall performance of its domestic sectors’ impact on the GVC. Under the perspective of econophysics, Global Industrial Impact Coefficient (GIIC) is proposed to measure the national competitiveness in gaining information superiority and intermediate interests. Analysis of GIVCN-WIOT models yields several insights including the following: (1) sectors with higher Random Walk Centrality contribute more to transmitting value streams within the global economic system; (2) Half-Value Ratio can be used to measure robustness of open-economy macroeconomics in the process of globalization; (3) the positive correlation between GIIC and GDP indicates that one country’s global industrial impact could reveal its international competitive advantage.

Suggested Citation

  • Xing, Lizhi & Dong, Xianlei & Guan, Jun, 2017. "Global industrial impact coefficient based on random walk process and inter-country input–output table," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 471(C), pages 576-591.
    • Handle: RePEc:eee:phsmap:v:471:y:2017:i:c:p:576-591
    DOI: 10.1016/j.physa.2016.12.070
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378437116310494
    Download Restriction: Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000
    File URL: https://libkey.io/10.1016/j.physa.2016.12.070?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bo Meng & Norihoko Yamano, 2017. "Compilation of a regionally extended inter-country input–output table and its application to global value chain analyses," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-38, December.
    2. Dietzenbacher, Erik & Guilhoto, Joaquim & Imori, Denise, 2013. "The Role of Brazilian Regions in the Global Value Chain," TD NEREUS 13-2013, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    3. Pol Antras & Davin Chor & Thibault Fally & Russell Hillberry, 2012. "Measuring the Upstreamness of Production and Trade Flows," American Economic Review, American Economic Association, vol. 102(3), pages 412-416, May.
    4. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    5. Neil Foster-McGregor & Robert Stehrer & Gaaitzen Vries, 2013. "Offshoring and the skill structure of labour demand," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(4), pages 631-662, December.
    6. Lizhi Xing & Qing Ye & Jun Guan, 2016. "Spreading Effect in Industrial Complex Network Based on Revised Structural Holes Theory," PLOS ONE, Public Library of Science, vol. 11(5), pages 1-18, May.
    7. Grazzini, Jakob & Spelta, Alessandro, 2022. "An empirical analysis of the global input–output network and its evolution," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 594(C).
    8. Richard Baldwin & Javier Lopez-Gonzalez, 2015. "Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses," The World Economy, Wiley Blackwell, vol. 38(11), pages 1682-1721, November.
    9. Martha G. Alatriste Contreras & Giorgio Fagiolo, 2014. "Propagation of economic shocks in input-output networks: A cross-country analysis," Post-Print hal-01474258, HAL.
    10. Ando, Sakai, 2014. "Measuring US sectoral shocks in the world input–output network," Economics Letters, Elsevier, vol. 125(2), pages 204-207.
    11. McNerney, James & Fath, Brian D. & Silverberg, Gerald, 2013. "Network structure of inter-industry flows," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(24), pages 6427-6441.
    12. Ottaviano, G.I.P. & Pessoa, João Paulo & Sampson, Thomas & Van Reenen, John, 2014. "Brexit or Fixit? The trade and welfare effects of leaving the European union," LSE Research Online Documents on Economics 57958, London School of Economics and Political Science, LSE Library.
    13. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    14. Meng, Bo & Wang, Zhi & Koopman, Robert, 2013. "How are global value chains fragmented and extended in China's domestic production networks?," IDE Discussion Papers 424, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    15. Koopman, Robert & Wang, Zhi & Wei, Shang-Jin, 2012. "Estimating domestic content in exports when processing trade is pervasive," Journal of Development Economics, Elsevier, vol. 99(1), pages 178-189.
    16. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tsekeris, Theodore, 2017. "Global value chains: Building blocks and network dynamics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 488(C), pages 187-204.
    2. Xing, Lizhi & Guan, Jun & Wu, Shan, 2018. "Measuring the impact of final demand on global production system based on Markov process," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 502(C), pages 148-163.
    3. He, Xi-jun & Dong, Yan-bo & Wu, Yu-ying & Jiang, Guo-rui & Zheng, Yao, 2019. "Factors affecting evolution of the interprovincial technology patent trade networks in China based on exponential random graph models," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 514(C), pages 443-457.
    4. Xing, Lizhi & Dong, Xianlei & Guan, Jun & Qiao, Xiaoyong, 2019. "Betweenness centrality for similarity-weight network and its application to measuring industrial sectors’ pivotability on the global value chain," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 516(C), pages 19-36.
    5. Ariel L. Wirkierman & Monica Bianchi & Anna Torriero, 2022. "Leontief Meets Markov: Sectoral Vulnerabilities Through Circular Connectivity," Networks and Spatial Economics, Springer, vol. 22(3), pages 659-690, September.
    6. Jun Guan & Xiaoyu Xu & Shan Wu & Lizhi Xing, 2018. "Measurement and simulation of the relatively competitive advantages and weaknesses between economies based on bipartite graph theory," PLOS ONE, Public Library of Science, vol. 13(5), pages 1-28, May.
    7. Xing, Lizhi & Guan, Jun & Dong, Xianlei & Wu, Shan, 2018. "Understanding the competitive advantage of TPP-related nations from an econophysics perspective: Influence caused by China and the United States," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 502(C), pages 164-184.
    8. Xing, Lizhi & Wang, Dawei & Li, Yan & Guan, Jun & Dong, Xianlei, 2020. "Simulation analysis of the competitive status between China and Portuguese-speaking countries under the background of one belt and one road initiative," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 539(C).
    9. Zheng, Huiling & Zhou, Jinsheng & Gao, Xiangyun & Xi, Xian & Liu, Donghui & Zhao, Yiran, 2021. "Global impacts of the topological structure of industrial driving networks on energy intensity," Energy, Elsevier, vol. 225(C).
    10. Jiang, Meihui & An, Haizhong & Gao, Xiangyun & Liu, Donghui & Jia, Nanfei & Xi, Xian, 2020. "Consumption-based multi-objective optimization model for minimizing energy consumption: A case study of China," Energy, Elsevier, vol. 208(C).
    11. Yanling Jin & Yi Xu & Rui Li & Changping Zhao & Zhenghui Yuan, 2022. "Comprehensive Evaluation of China’s Input–Output Sector Status Based on the Entropy Weight-Social Network Analysis Method," Sustainability, MDPI, vol. 14(21), pages 1-25, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xing, Lizhi & Guan, Jun & Wu, Shan, 2018. "Measuring the impact of final demand on global production system based on Markov process," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 502(C), pages 148-163.
    2. Lizhi Xing & Qing Ye & Jun Guan, 2016. "Spreading Effect in Industrial Complex Network Based on Revised Structural Holes Theory," PLOS ONE, Public Library of Science, vol. 11(5), pages 1-18, May.
    3. Xing, Lizhi & Wang, Dawei & Li, Yan & Guan, Jun & Dong, Xianlei, 2020. "Simulation analysis of the competitive status between China and Portuguese-speaking countries under the background of one belt and one road initiative," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 539(C).
    4. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    5. João Amador & Sónia Cabral, 2014. "Global Value Chains: Surveying Drivers, Measures and Impacts," Working Papers w201403, Banco de Portugal, Economics and Research Department.
    6. Marcel P. Timmer & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2021. "Supply Chain Fragmentation and the Global Trade Elasticity: A New Accounting Framework," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 69(4), pages 656-680, December.
    7. Baldwin, Richard & Freeman, Rebecca & Theodorakopoulos, Angelos, 2022. "Horses for courses: measuring foreign supply chain exposure," Bank of England working papers 996, Bank of England.
    8. Fan, Xiaojia & Wu, Sanmang & Lei, Yalin & Li, Shantong & Li, Li, 2020. "Have China's resource-based regions improved in the division of GVCs? — Taking Shanxi Province as an example," Resources Policy, Elsevier, vol. 68(C).
    9. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2019. "Global Value Chains and Wages: Multi-Country Evidence from Linked Worker-Industry Data," Open Economies Review, Springer, vol. 30(3), pages 505-539, July.
    10. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2020. "Wage response to global production links: evidence for workers from 28 European countries (2005–2014)," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(4), pages 769-801, November.
    11. Araújo, Inácio Fernandes de & Perobelli, Fernando Salgueiro & Faria, Weslem Rodrigues, 2021. "Regional and global patterns of participation in value chains: Evidence from Brazil," International Economics, Elsevier, vol. 165(C), pages 154-171.
    12. Bernhard Michel & Caroline Hambÿe & Bart Hertveldt, 2018. "The Role of Exporters and Domestic Producers in GVCs: Evidence for Belgium based on Extended National Supply-and-Use Tables Integrated into a Global Multiregional Input-Output Table," NBER Working Papers 25155, National Bureau of Economic Research, Inc.
    13. Pierluigi Montalbano & Silvia Nenci & Carlo Pietrobelli, 2018. "Opening and linking up: firms, GVCs, and productivity in Latin America," Small Business Economics, Springer, vol. 50(4), pages 917-935, April.
    14. João Amador & Sónia Cabral, 2017. "Networks of Value-added Trade," The World Economy, Wiley Blackwell, vol. 40(7), pages 1291-1313, July.
    15. Chiara Bentivogli & Tommaso Ferraresi & Paola Monti & Renato Paniccià & Stefano Rosignoli, 2019. "Italian Regions in Global Value Chains: An Input-Output Approach," Politica economica, Società editrice il Mulino, issue 1, pages 55-94.
    16. João Amador & Sónia Cabral & Rossana Mastrandrea & Franco Ruzzenenti, 2018. "Who’s Who in Global Value Chains? A Weighted Network Approach," Open Economies Review, Springer, vol. 29(5), pages 1039-1059, November.
    17. Zhong, Zhangqi & Guo, Zhifang & Zhang, Jianwu, 2021. "Does the participation in global value chains promote interregional carbon emissions transferring via trade? Evidence from 39 major economies," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    18. Jun Guan & Xiaoyu Xu & Shan Wu & Lizhi Xing, 2018. "Measurement and simulation of the relatively competitive advantages and weaknesses between economies based on bipartite graph theory," PLOS ONE, Public Library of Science, vol. 13(5), pages 1-28, May.
    19. Federico Riccio & Lorenzo Cresti & Maria Enrica Virgillito, 2022. "The labour share along global value chains. Perspectives and evidence from sectoral interdependence," LEM Papers Series 2022/11, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    20. Montalbano, Pierluigi & Nenci, Silvia, 2022. "Does global value chain participation and positioning in the agriculture and food sectors affect economic performance? A global assessment," Food Policy, Elsevier, vol. 108(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:phsmap:v:471:y:2017:i:c:p:576-591. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.