Betweenness centrality for similarity-weight network and its application to measuring industrial sectors’ pivotability on the global value chain

Lizhi Xing, Xianlei Dong, Jun Guan and Xiaoyong Qiao

Physica A: Statistical Mechanics and its Applications, 2019, vol. 516, issue C, 19-36

Abstract: This paper focuses on measuring the globally and nationally economic system’s connectedness and industrial sector’s function on the Global Value Chain (GVC), as reinforcements to the present studies on international trade. Firstly, we reconsidered the length-related and position-related measures in literatures about vertical specialization from the perspective of econophysics. Secondly, we redefined the inter-country and inter-sector propagating process of intermediate goods and proposed the concept of Strongest Relevance Path Length (SRPL) based on Revised Floyd–Warshall Algorithm (RFWA), which is the basis of new measurement. Thirdly, we introduced Average and Maximum Strongest Relevance Degree (ASRD and MSRD) to measure the connectedness and compactness of network respectively. Fourthly, enlightened by betweenness centrality, we introduced SRPL-based index to measure industrial sectors’ Pivotability in transferring intermediate goods Fifthly, these indices were applied to the empirical analysis of the economic system by physical statistics. Finally, through cascading failure analysis, we found that both ASRD and MSRD reflecting the overall performance of propagating process of intermediate goods are vulnerable to those sectors with high pivotability.

Keywords: Global value chain; Inter-country input–output table; Floyd–Warshall algorithm; Betweenness centrality; Pivotability (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378437118313426
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

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:516:y:2019:i:c:p:19-36

DOI: 10.1016/j.physa.2018.10.004

Access Statistics for this article

Physica A: Statistical Mechanics and its Applications is currently edited by K. A. Dawson, J. O. Indekeu, H.E. Stanley and C. Tsallis

More articles in Physica A: Statistical Mechanics and its Applications from Elsevier
Bibliographic data for series maintained by Catherine Liu ().