IDEAS home Printed from https://ideas.repec.org/a/eee/phsmap/v581y2021ics0378437121004696.html
   My bibliography  Save this article

Regional and sectoral structures of the Chinese economy: A network perspective from multi-regional input–output tables

Author

Listed:
  • Wang, Tao
  • Xiao, Shiying
  • Yan, Jun
  • Zhang, Panpan

Abstract

A multi-regional input–output table (MRIOT) containing the transactions among the region-sectors in an economy defines a weighted and directed network. Using network analysis tools, we analyze the regional and sectoral structure of the Chinese economy with the province-sector MRIOTs of China in 2007 and 2012. Global analyses are done with network topology measures. Growth-driving province-sector clusters are identified with community detection methods. Influential province-sectors are ranked by weighted PageRank scores. The results have revealed a few interesting and telling insights. The level of inter-province activities increased with the rapid growth of the national economy, but not as fast as that of intra-province economic activities. Regional community structures were deeply associated with geographical factors. The community heterogeneity across the regions was high and the regional fragmentation increased during the study period. Quantified metrics assessing the relative importance of the province-sectors in the national economy echo the national and regional economic development policies to a certain extent.

Suggested Citation

  • Wang, Tao & Xiao, Shiying & Yan, Jun & Zhang, Panpan, 2021. "Regional and sectoral structures of the Chinese economy: A network perspective from multi-regional input–output tables," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 581(C).
  • Handle: RePEc:eee:phsmap:v:581:y:2021:i:c:s0378437121004696
    DOI: 10.1016/j.physa.2021.126196
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378437121004696
    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.2021.126196?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. João Amador & Sónia Cabral, 2017. "Networks of Value-added Trade," The World Economy, Wiley Blackwell, vol. 40(7), pages 1291-1313, July.
    2. Zhang Bin & Horvath Steve, 2005. "A General Framework for Weighted Gene Co-Expression Network Analysis," Statistical Applications in Genetics and Molecular Biology, De Gruyter, vol. 4(1), pages 1-45, August.
    3. Bo Meng & Yong Fang & Jiemin Guo & Yaxiong Zhang, 2017. "Measuring China’s domestic production networks through Trade in Value-added perspectives," Economic Systems Research, Taylor & Francis Journals, vol. 29(1), pages 48-65, January.
    4. Yuan, Chaoqing & Liu, Sifeng & Xie, Naiming, 2010. "The impact on chinese economic growth and energy consumption of the Global Financial Crisis: An input–output analysis," Energy, Elsevier, vol. 35(4), pages 1805-1812.
    5. Clemente, G.P. & Grassi, R., 2018. "Directed clustering in weighted networks: A new perspective," Chaos, Solitons & Fractals, Elsevier, vol. 107(C), pages 26-38.
    6. Ana Lúcia Marto Sargento, 2007. "Empirical Examination of the Gravity Model in two Different Contexts: Estimation and Explanation," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 27(2), pages 103-127, August.
    7. Jia, Junxue & Ma, Guangrong & Qin, Cong & Wang, Liyan, 2020. "Place-based policies, state-led industrialisation, and regional development: Evidence from China's Great Western Development Programme," European Economic Review, Elsevier, vol. 123(C).
    8. Zhang, X. & Zhu, J., 2013. "Skeleton of weighted social network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(6), pages 1547-1556.
    9. Xu, Ming & Liang, Sai, 2019. "Input–output networks offer new insights of economic structure," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 527(C).
    10. Gregory C. Chow, 2003. "IMPACT OF JOINING THE WTO ON CHINA's ECONOMIC, LEGAL AND POLITICAL INSTITUTIONS," Pacific Economic Review, Wiley Blackwell, vol. 8(2), pages 105-115, June.
    11. Chen, Shiyi & Jefferson, Gary H. & Zhang, Jun, 2011. "Structural change, productivity growth and industrial transformation in China," China Economic Review, Elsevier, vol. 22(1), pages 133-150, March.
    12. 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.
    13. Canfei He & Yan Yan & David Rigby, 2018. "Regional industrial evolution in China," Papers in Regional Science, Wiley Blackwell, vol. 97(2), pages 173-198, June.
    14. Prem S. Laumas, 1976. "The Weighting Problem in Testing the Linkage Hypothesis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(2), pages 308-312.
    15. Federica Cerina & Zhen Zhu & Alessandro Chessa & Massimo Riccaboni, 2015. "World Input-Output Network," PLOS ONE, Public Library of Science, vol. 10(7), pages 1-21, July.
    16. Guang Ouyang & Dipak K. Dey & Panpan Zhang, 2020. "Clique-Based Method for Social Network Clustering," Journal of Classification, Springer;The Classification Society, vol. 37(1), pages 254-274, April.
    17. Leonidov, Andrey & Serebryannikova, Ekaterina, 2019. "Dynamical topology of highly aggregated input–output networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 518(C), pages 234-252.
    18. Bong‐Soo Lee & Jiangang Peng & Guanzheng Li & Jing He, 2012. "Regional Economic Disparity, Financial Disparity, and National Economic Growth: Evidence from China," Review of Development Economics, Wiley Blackwell, vol. 16(2), pages 342-358, May.
    19. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-481, August.
    20. Justin Yifu Lin, 2011. "China and the global economy," Proceedings, Federal Reserve Bank of San Francisco, issue Nov, pages 213-229.
    21. Defourny, Jacques & Thorbecke, Erik, 1984. "Structural Path Analysis and Multiplier Decomposition within a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 94(373), pages 111-136, March.
    22. Donghua Chen & Saqib Khan & Xin Yu & Zhou Zhang, 2013. "Government Intervention and Investment Comovement: Chinese Evidence," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 40(3-4), pages 564-587, April.
    23. Edward Feser & Edward Bergman, 2000. "National Industry Cluster Templates: A Framework for Applied Regional Cluster Analysis," Regional Studies, Taylor & Francis Journals, vol. 34(1), pages 1-19.
    24. Nicholas J Foti & James M Hughes & Daniel N Rockmore, 2011. "Nonparametric Sparsification of Complex Multiscale Networks," PLOS ONE, Public Library of Science, vol. 6(2), pages 1-10, February.
    25. Ouyang, Min & Peng, Yulei, 2015. "The treatment-effect estimation: A case study of the 2008 economic stimulus package of China," Journal of Econometrics, Elsevier, vol. 188(2), pages 545-557.
    26. Sandra Poncet, 2005. "A Fragmented China: Measure and Determinants of Chinese Domestic Market Disintegration," Review of International Economics, Wiley Blackwell, vol. 13(3), pages 409-430, August.
    27. Sun, Xiaoqi & An, Haizhong & Liu, Xiaojia, 2018. "Network analysis of Chinese provincial economies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 492(C), pages 1168-1180.
    28. Rita María del Río-Chanona & Jelena Grujić & Henrik Jeldtoft Jensen, 2017. "Trends of the World Input and Output Network of Global Trade," PLOS ONE, Public Library of Science, vol. 12(1), pages 1-14, January.
    29. Arnold Tukker & Erik Dietzenbacher, 2013. "Global Multiregional Input-Output Frameworks: An Introduction And Outlook," Economic Systems Research, Taylor & Francis Journals, vol. 25(1), pages 1-19, March.
    30. Shenggen Fan & Xiaobo Zhang & Sherman Robinson, 2003. "Structural Change and Economic Growth in China," Review of Development Economics, Wiley Blackwell, vol. 7(3), pages 360-377, August.
    31. Mark S. Handcock & Adrian E. Raftery & Jeremy M. Tantrum, 2007. "Model‐based clustering for social networks," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 170(2), pages 301-354, March.
    32. Kiyoshi Fujikawa & Carlo Milana, 2002. "Input-Output Decomposition Analysis of Sectoral Price Gaps between Japan and China," Economic Systems Research, Taylor & Francis Journals, vol. 14(1), pages 59-79.
    33. Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," NBER Working Papers 7828, National Bureau of Economic Research, Inc.
    34. Xiaobo Su, 2014. "Multi-Scalar Regionalization, Network Connections and the Development of Yunnan Province, China," Regional Studies, Taylor & Francis Journals, vol. 48(1), pages 91-104, January.
    35. Leo Katz, 1953. "A new status index derived from sociometric analysis," Psychometrika, Springer;The Psychometric Society, vol. 18(1), pages 39-43, March.
    36. Dietzenbacher, Erik, 1992. "The measurement of interindustry linkages : Key sectors in the Netherlands," Economic Modelling, Elsevier, vol. 9(4), pages 419-437, October.
    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. Chong Yin & Yingxin Cui & Yue Liu, 2022. "Effect and Mechanism of Economic Circulation in the Middle and Lower Reaches of the Yellow River: Multiregional Input–Output Model and Industrial Complex Network Approaches," Sustainability, MDPI, vol. 14(19), pages 1-18, October.
    2. Zhang, Panpan & Wang, Tiandong & Yan, Jun, 2022. "PageRank centrality and algorithms for weighted, directed networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 586(C).
    3. Chengfu Wang & Lijun Song & Haoqi Lu & Shuxin Zheng & Chengfeng Huang, 2022. "Assessing the Economic Energy Level of the Chengdu–Chongqing Economic Circle: An Integrative Perspective of “Field Source” and “Field”," Sustainability, MDPI, vol. 14(16), pages 1-22, August.
    4. Xiao, Shiying & Yan, Jun & Zhang, Panpan, 2022. "Incorporating auxiliary information in betweenness measure for input–output networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 607(C).
    5. Li, Yongqing & Ma, Huimin & Xiong, Jie & Zhang, Jinlong & Ponnamma Divakaran, Pradeep Kumar, 2022. "Manufacturing structure, transformation path, and performance evolution: An industrial network perspective," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    6. Shaoqiang Ma & Min Fang & Xin Zhou, 2023. "China’s Embodied Copper Flow from the Demand-Side and Production-Side Perspectives," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    7. Shen, Yi & Yang, Huang & Xie, Yuangcheng & Liu, Yang & Ren, Gang, 2023. "Adaptive robustness optimization against network cascading congestion induced by fluctuant load via a bilateral-adaptive strategy," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 630(C).

    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. Flora Bellone & Arnaud Persenda & Paolo Zeppini, 2024. "The Rise of China in the Global Production Network: What Can Autocatalytic Sets Teach Us?," GREDEG Working Papers 2024-26, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    2. Raffaele Giammetti & Alberto Russo & Mauro Gallegati, 2020. "Key sectors in input–output production networks: An application to Brexit," The World Economy, Wiley Blackwell, vol. 43(4), pages 840-870, April.
    3. Zhang, Panpan & Wang, Tiandong & Yan, Jun, 2022. "PageRank centrality and algorithms for weighted, directed networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 586(C).
    4. Chen, Quanrun & Gao, Yuning & Pei, Jiansuo & de Vries, Gaaitzen & Wang, Fei, 2022. "China's domestic production networks," China Economic Review, Elsevier, vol. 72(C).
    5. 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.
    6. Fabrizio Fusillo & Sandro Montresor & Giuseppe Vittucci Marzetti, 2021. "The global network of embodied R&D flows," Discussion Paper series in Regional Science & Economic Geography 2021-05, Gran Sasso Science Institute, Social Sciences, revised Apr 2021.
    7. Domínguez, Alvaro & Santos-Marquez, Felipe & Mendez, Carlos, 2021. "Sectoral productivity convergence, input-output structure and network communities in Japan," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 582-599.
    8. Xiao, Shiying & Yan, Jun & Zhang, Panpan, 2022. "Incorporating auxiliary information in betweenness measure for input–output networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 607(C).
    9. Marcel P Timmer & Sébastien Miroudot & Gaaitzen J de Vries, 2019. "Functional specialisation in trade," Journal of Economic Geography, Oxford University Press, vol. 19(1), pages 1-30.
    10. Georgios Angelidis & Charalambos Bratsas & Georgios Makris & Evangelos Ioannidis & Nikos C. Varsakelis & Ioannis E. Antoniou, 2021. "Global Value Chains of COVID-19 Materials: A Weighted Directed Network Analysis," Mathematics, MDPI, vol. 9(24), pages 1-19, December.
    11. Federica Cerina & Zhen Zhu & Alessandro Chessa & Massimo Riccaboni, 2015. "World Input-Output Network," PLOS ONE, Public Library of Science, vol. 10(7), pages 1-21, July.
    12. Han, Yang & Zhang, Haotian & Zhao, Yong, 2021. "Structural evolution of real estate industry in China: 2002-2017," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 45-56.
    13. Han, Yang, 2022. "The impact of the COVID-19 pandemic on China's economic structure: An input–output approach," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 181-195.
    14. 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.
    15. Leonidov, Andrey & Serebryannikova, Ekaterina, 2019. "Dynamical topology of highly aggregated input–output networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 518(C), pages 234-252.
    16. Jong Hee Park & Byung Koo Kim, 2020. "Why your neighbor matters: Positions in preferential trade agreement networks and export growth in global value chains," Economics and Politics, Wiley Blackwell, vol. 32(3), pages 381-410, November.
    17. Barauskaite, Kristina & Nguyen, Anh D.M., 2021. "Global intersectoral production network and aggregate fluctuations," Economic Modelling, Elsevier, vol. 102(C).
    18. Herrmann-Pillath, Carsten & Libman, Alexander & Xiaofan, Yu, 2010. "State and market integration in China: A spatial econometrics approach to 'local protectionism'," Frankfurt School - Working Paper Series 137, Frankfurt School of Finance and Management.
    19. Agnosteva, Delina E. & Anderson, James E. & Yotov, Yoto V., 2019. "Intra-national trade costs: Assaying regional frictions," European Economic Review, Elsevier, vol. 112(C), pages 32-50.
    20. Boglioni, Michele & Zambelli, Stefano, 2018. "Specialization patterns and reduction of CO2 emissions. An empirical investigation of environmental preservation and economic efficiency," Energy Economics, Elsevier, vol. 75(C), pages 134-149.

    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:581:y:2021:i:c:s0378437121004696. 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.