Find the Vital Industrial Sectors and IO Relations

Lizhi Xing ()
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Lizhi Xing: Beijing University of Technology

Chapter Chapter 4 in Complex Network-Based Global Value Chain Accounting System, 2022, pp 67-113 from Springer

Abstract: Abstract There are two sorts of methods to measure the heterogeneity of social networks—Burt’s Structural Holes Index and Freeman’s Between Centrality. The former is mainly applied to evaluate redundancy in ego networks, while the latter is used to calculate the important degree of all the nodes. For the whole network, if a node is on many geodesic paths, it plays an important intermediate role, usually measured by betweenness. Measured with centrality, one node enjoys the maximum proximity closeness in a network, implying the minimum summation of geodesic distance, it occupies an important intermediate location.In this chapter, we firstly measure the robustness of the global and regional economic systems by Connectedness and Compactness, which are the average of and the highest value in the SRPL numerical matrix respectively. Secondly, enlightened by the concept of betweenness centrality of node and edge, we design two sorts of Value-Added Pivotability indicators based on the SRPL string matrix with the purpose of ranking industrial sectors [1], as well as IO relations [2], according to their brokerage function in the process of intermediate goods turnover. Thirdly, in order to measure the industrial sectors’ interdependence with all the upstream and downstream ones, we count Backward Closeness and Forward Closeness based on the SRPL numerical matrix [3] , which are the counterparts of in-degree and out-degree closeness centrality in the complex network. Besides, Relative Upstreamness Index as their ratio is proposed to locate the relative position of industrial sectors.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-16-9264-2_4

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DOI: 10.1007/978-981-16-9264-2_4

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