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Measuring the impact of final demand on global production system based on Markov process

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  • Xing, Lizhi
  • Guan, Jun
  • Wu, Shan

Abstract

Input–output table is a comprehensive and detailed in describing the national economic systems, consisting of supply and demand information among various industrial sectors. The complex network, a theory and method for measuring the structure of complex system, can depict the structural properties of social and economic systems, and reveal the complicated relationships between the inner hierarchies and the external macroeconomic functions. This paper tried to measure the globalization degree of industrial sectors on the global value chain. Firstly, it constructed inter-country input–output network models to reproduce the topological structure of global economic system. Secondly, it regarded the propagation of intermediate goods on the global value chain as Markov process and introduced counting first passage betweenness to quantify the added processing amount when globally final demand stimulates this production system. Thirdly, it analyzed the features of globalization at both global and country-sector level

Suggested Citation

  • 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.
    • Handle: RePEc:eee:phsmap:v:502:y:2018:i:c:p:148-163
    DOI: 10.1016/j.physa.2018.02.129
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    References listed on IDEAS

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    Cited by:

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    2. 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.
    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).

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