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Measuring exposure to network concentration risk in global supply chains: Volume versus frequency

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  • Inomata, Satoshi
  • Hanaka, Tesshu

Abstract

In this paper, we present new referential statistics for the degree of supply chain exposure to network concentration risk. The study's contribution rests on the development of a metric that indicates network concentration in terms of the frequency of supply chain engagement with the regions of analytical concern, alongside the traditional approach based on volume measurement of value-added concentration. Japan, a country with a high propensity to encounter natural hazards, and China, under mounting geopolitical tension with the United States, are chosen as the target regions for the assessment of network concentration. In addition, the highly asymmetric structure of mutual economic dependency in the US-China relations is identified.

Suggested Citation

  • Inomata, Satoshi & Hanaka, Tesshu, 2024. "Measuring exposure to network concentration risk in global supply chains: Volume versus frequency," Structural Change and Economic Dynamics, Elsevier, vol. 68(C), pages 177-193.
    • Handle: RePEc:eee:streco:v:68:y:2024:i:c:p:177-193
    DOI: 10.1016/j.strueco.2023.10.002
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    More about this item

    Keywords

    Supply chain exposure; Network concentration; Choke points; Global value chains; Input-output analysis;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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