The Rise of China in the Global Production Network: What Can Autocatalytic Sets Teach Us?

Flora Bellone, Arnaud Persenda and Paolo Zeppini
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Flora Bellone: Université Côte d'Azur, CNRS, GREDEG, France
Arnaud Persenda: Université Côte d'Azur, CNRS, GREDEG, France
Paolo Zeppini: Université Côte d'Azur, CNRS, GREDEG, France

No 2024-26, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: In this paper we revisit the emergence of China as a dominant player within the world economy by using the innovative framework of autocatalytic networks. Specifically, we build and apply an autocatalylic sets detection algorithm to a world input-output (IO) network built from the WIOD database, covering the 2000-2014 period. From this analysis, we identify two key turning points in the course of China development: First, the year 2005, when a Chinese densifying local autocatalytic set branched to a global one, unraveling the complementarity between domestic and international cyclical IO connections in the course of China development. Second, the year 2013, when key Chinese industries replace their U.S. counterparts at the core of the global autocatalytic set, revealing an economic rivalry between these two large economies specifically for their role and position in the global production network.

Keywords: Autocatalytic networks; Trade; Input-Output tables; China (search for similar items in EconPapers)
JEL-codes: D57 F63 O14 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2024-09
New Economics Papers: this item is included in nep-cna, nep-hme, nep-ino, nep-int and nep-net
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