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

Satoshi Inomata and Tesshu Hanaka

Structural Change and Economic Dynamics, 2024, vol. 68, issue C, 177-193

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.

Keywords: Supply chain exposure; Network concentration; Choke points; Global value chains; Input-output analysis (search for similar items in EconPapers)
JEL-codes: C67 F52 F60 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:68:y:2024:i:c:p:177-193

DOI: 10.1016/j.strueco.2023.10.002

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