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Probe the Industrial Linkages Reasonably and Effectively

In: Complex Network-Based Global Value Chain Accounting System

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  • Lizhi Xing

    (Beijing University of Technology)

Abstract

In our opinion, GVC’s topological structure is very similar to the supply chain, which sheds a light on the issue of the path in GIVCN model. As known to all, the Bullwhip Effect, also known as the Forrester Effect [1], is a distribution channel phenomenon in which forecasts yield supply chain inefficiencies, that is, information asymmetry in the nature. It refers to increasing inventory swings in response to shifts in customer demand when moving upward on the supply chain. For the sake of weakening it, the most direct and efficient way is to reduce the length of the transaction process as well as improve the efficiency and effectiveness of each step. Therefore, in this chapter, we redefine the inter-industry channel that intermediate goods flow through in aspect of both propagation efficiency and effectiveness, and propose the concept of Strongest Relevance Path Length based on Revised Floyd-Warshall Algorithm, which underpins the new measurement in the next chapter.

Suggested Citation

  • Lizhi Xing, 2022. "Probe the Industrial Linkages Reasonably and Effectively," Springer Books, in: Complex Network-Based Global Value Chain Accounting System, chapter 0, pages 47-65, Springer.
    • Handle: RePEc:spr:sprchp:978-981-16-9264-2_3
    DOI: 10.1007/978-981-16-9264-2_3
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