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Understanding the competitive advantage of TPP-related nations from an econophysics perspective: Influence caused by China and the United States

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

Abstract

A new analytical framework of relatively competitive advantages of economies is established in this paper, which involves distinguishing functions of industrial sectors on the global value chain with bipartite graph theory and extracting inter-sector competitive relations through resource allocation process. Furthermore, it introduces network-based quantitative indices to measure the competitive advantage on the level of industrial sector and country respectively, taking scarcity of industrial resources into consideration. Finally, it carries out scenario simulation to analyze impacts on 13 TPP-related countries’ competitiveness under four kinds of scenarios. Results show that a TPP without both the United States and China will undermine the two countries’ competitiveness, and China’s impact on GVC will be truly weaken if a TPP agreement led by the United States is reached and vice versa. Anyway, A TPP including both these two countries would serve the mutual interests

Suggested Citation

  • 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.
    • Handle: RePEc:eee:phsmap:v:502:y:2018:i:c:p:164-184
    DOI: 10.1016/j.physa.2018.02.126
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    1. 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.
    2. 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.
    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. Cheng, Mengyao & Wu, Jialu & Li, Chaohui & Jia, Yuanxin & Xia, Xiaohua, 2023. "Tele-connection of global agricultural land network: Incorporating complex network approach with multi-regional input-output analysis," Land Use Policy, Elsevier, vol. 125(C).

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