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Global Input – Output Analysis: A Network Approach

Year 2017, Volume: 3 Issue: 2, 89 - 102, 25.12.2017

Abstract

Network
analysis, a tool that is used to analyze complex systems, which also appeared
in economics, which is defined as a complex – adaptive system. Although the
international trade networks and financial networks are most popular areas,
this method has been employed for input-output Networks.

In today’s
globalized production chain, international input-output network has a prominent
role since it captures input flows among each sector of each country which
occurs in the network. So, it can easily be understood why globalized
production chain is also called as ‘global production network’. Network
analysis is a significant tool since it takes international links among sectors
of national economies into consideration. Thus, findings of the analysis can be
informative about how a potential demand/supply shock in this global input flow
may affect this globalized production chain.





In this
study, global input-output tables will be examined and compared for 1995 and
2011, via network tools. It is aimed to reveal both inter-sectoral connectivity
and centralities of sectors and also change of these properties from 1995 to
2011. 

References

  • Barabasi, A.L. & Albert, R. (1999). Emergence of Scaling in Random Networks. Science, 286, 509-512. DOI: 10.1126/science.286.5439.509.
  • Barrat, A. , Barthelemy, M. & Vespignani, A. (2004). Traffic-Driven Model of the World Wide Web Graph. Algorithms and Models for the Web-Graph, Third International Workshop, Springer Berlin Heidelberg, 56-67. DOI: 10.1007/b101552.
  • Blöchl, F., Theis, F., Redondo, F.V. & Fisher, E. (2011). Vertex Centralities in Input-Output Networks Reveal the Structure of Modern Economies. Physical Review E, 83, 1-8. DOI: 10.1103/PhysRevE.83.046127.
  • Caldarelli, G. (2008). Lectures in complex networks. International Workshop & Conference on Network Science. http://www.ifr.ac.uk/netsci08/Download/Invited/ws1_Caldarelli.pdf.
  • Chen, Zhan-Ming & Chen, G.Q. (2013). Demand-driven Energy Requirement of World Economy 2007: A Multi-region Input-Output Network Simulation. Communications in Nonlinear Science and Numerical Simulation, 18, 1757-1774.
  • De Backer, K. & Yamano, N. (2007). The Measurement of Globalisation using International Input-Output Tables. OECD Science, Technology and Industry Working Papers, 08, OECD Publishing, 1-32. DOI 10.1787/242020221356
  • De Backer, K. & Miroudot, S. (2014). Mapping Global Value Chains. European Central Bank Working Paper Series, 1677, 1-40.
  • Decarlo, L. (1997). On the Meaning and the Use of Kurtosis. Psychological Methods, 2 (3), 292-307. DOI: 10.1037/1082-989X.2.3.292
  • Estrada, E. (2015). Introduction to Complex Networks: Structure and Dynamics. Evolutionary Equations with Applications in Natural Sciences. Lecture Notes in Mathematics 2126. J. Banasiak, M. & M. Mokhtar-Kharroubi (eds.). p. 93-131. DOI 10.1007/978-3-319-11322-7__3.
  • Fagiolo, G., Reyes, J. & Schiavo, S. (2010). The Evolution of the World Trade Web: A Weighted Network Analysis. Journal of Evolutionary Economics, 20, 479-514. DOI: 10.1007/s00191-009-0160-x.
  • Fuge, M., Tee, K. & Agogino, A. Network Analysis of Collaborative Design Networks: A Case Study of OpenIDEO. http://www.markfuge.com/papers/fuge_tee_openideo_jcise_final_2013.pdf, 14.03.2016.
  • Grazzini, J. & Spelta, A. (2015). An Empirical Analysis of the Global Input-Output Network and Its Evolution. Universite Cattolica del Sacro Cuore, Working Paper Series , 31, 1-28.
  • Hein, O., Schwind, M. & König, W. (2006). Scale-Free Networks – The Impact of Fat Tailed Degree Distribution on Diffusion and Communication Processes. Wirtschaftsinformatik, 48, 267-275.
  • Howell, A. (2012). Network statistics and modeling the global trade economy: exponential random graph models and latent space models: is geography dead?. unpublished thesis, University of California.
  • Kleinberg, J.M. (1999). Authoritative Sources in a Hyperlinked Enironment. 1-34.
  • Kolaczyk, E. (2009). Statistical Analysis of Network Data Methods and Models. Springer.
  • Leon, C., Perez, J. (2013). Authority Centrality and Hub Centrality as Metrics of Systemic Importance of Financial Market Infrastructure. Borradores de Economia, 754, 1-24.
  • Leon Rincon, C. , Machado, C. & Paipilla, S. (2015). Identifying Central Bank Liquidity Super-Spreader in Interbank Funds Network. ”, EBC Discussion Paper, Vol. 2015-010, 1-43.
  • Leon, C. & Berndsen, R.J. (2014). Rethinking Financial Stability: Challenges Arising from Financial Networks’ Modular Scale-free Architecture. 1-37.
  • Lovric, M. (2010). Skewness. International Encyclopedia of Statistical Science, Springer: New York.
  • Milberg, W.& Winkler, D. (2013). Outsourcing Economics – Global Value Chains in Capitalist Development, Cambridge University Press, 1st published.
  • Mitchell, M. (2006). Complex Systems: Network Thinking. SFI Working Paper, 2006-10-036.
  • Mitchell, M. (2009). Complexity A Guided Tour. Oxford University Press.
  • Newman, M.E.J. (2010). Networks An Introduction.
  • Newman, M.E.J. Mixing Patterns in Network. http://arxiv.org/pdf/cond-mat/0209450v2.pdf
  • OECD (2009). Applications of Complexity Science for Public Policy- New Tools for Finding Unanticipated Consequences and Unrealized Opportunities. 1-25.
  • Reichardt, J. (2009). Introduction to Complex Networks. Springer-Verlag, Berlin Heidelberg.
  • Soyyiğit, S. & Eren, E. (2016). Network Approach to Input-Output Analysis: The Case of Turkey. Proceedings of the 2nd Annual International Conference on Social Science, Vol.2. Istanbul, 822-839.
  • Timmer, M. , Dietzenbacher, E., Los, B., Stehrer, R. & Vries, Gaaitzen, J. (2015). An Illustrated User Guide to the World Input-Output Database: the Case of Global Automative Production. Review of International Economics, 23 (3), 575-605. DOI: 10.1111/roie.12178.
  • Wong, Y.M. (2014). Fair Share of Supply Chain Responsibility for Low Carbon Manufacturing. Smart Manufacturing Innovation and Transformation: Interconnection and Intelligence, USA.
  • Wu, L. . Centrality of the Supply Chain Network. 5th Annual SWUFE Baruch Research Symposium, 1-24.

Küresel Girdi-Çıktı Analizi: Ağ Yaklaşımı

Year 2017, Volume: 3 Issue: 2, 89 - 102, 25.12.2017

Abstract

Ağ analizi, kompleks-adaptif bir sistem olarak tanımladığımız
iktisatta da yer alan kompleks sistemlerin analiz edilmesinde kullanılan bir
araçtır. İktisatta en çok kullanıldığı alanlar uluslararası ticaret ağları ve
finansal ağlar olmakla birlikte, son dönemlerde girdi-çıktı ağlarının
analizinde de kullanılmaktadır.

Günümüzdeki küreselleşmiş üretim zincirinde, uluslararası
ticaret ağı, ağ içerisindeki her bir ülkenin her bir sektörü arasında
gerçekleşen girdi akışını yansıtması açısından önemli bir role sahiptir. Bu yapı
nedeniyle de, küreselleşmiş üretim zinciri artık ‘küresel üretim ağı’ olarak
anılmaktadır. Ağ analizi, ulusal ekonomilerin sektörleri arasındaki ilişkileri
dikkate almasından dolayı önemli bir araçtır. Bu nedenle, analizin bulguları,
olası bir talep ya da arz şokunun bu küresel girdi akışı içerisinde, söz konusu
küresel üretim ağını nasıl etkileyeceği konusunda bilgilendirici olabilir.





Bu çalışmada, 1995 ve 2011 yılları için küresel girdi-çıktı
tabloları ağ analizi yardımıyla analiz edilecek ve birbiri ile
karşılaştırılacaktır. Çalışma sonunda, sektörler arası bağlantısallık ve
sektörlerin merkeziliklerinin ortaya koyulması, ayrıca ağ özelliklerinin 1995
yılından 2011 yılına kadar geçirdiği değişimin incelenmesi amaçlanmıştır. 

References

  • Barabasi, A.L. & Albert, R. (1999). Emergence of Scaling in Random Networks. Science, 286, 509-512. DOI: 10.1126/science.286.5439.509.
  • Barrat, A. , Barthelemy, M. & Vespignani, A. (2004). Traffic-Driven Model of the World Wide Web Graph. Algorithms and Models for the Web-Graph, Third International Workshop, Springer Berlin Heidelberg, 56-67. DOI: 10.1007/b101552.
  • Blöchl, F., Theis, F., Redondo, F.V. & Fisher, E. (2011). Vertex Centralities in Input-Output Networks Reveal the Structure of Modern Economies. Physical Review E, 83, 1-8. DOI: 10.1103/PhysRevE.83.046127.
  • Caldarelli, G. (2008). Lectures in complex networks. International Workshop & Conference on Network Science. http://www.ifr.ac.uk/netsci08/Download/Invited/ws1_Caldarelli.pdf.
  • Chen, Zhan-Ming & Chen, G.Q. (2013). Demand-driven Energy Requirement of World Economy 2007: A Multi-region Input-Output Network Simulation. Communications in Nonlinear Science and Numerical Simulation, 18, 1757-1774.
  • De Backer, K. & Yamano, N. (2007). The Measurement of Globalisation using International Input-Output Tables. OECD Science, Technology and Industry Working Papers, 08, OECD Publishing, 1-32. DOI 10.1787/242020221356
  • De Backer, K. & Miroudot, S. (2014). Mapping Global Value Chains. European Central Bank Working Paper Series, 1677, 1-40.
  • Decarlo, L. (1997). On the Meaning and the Use of Kurtosis. Psychological Methods, 2 (3), 292-307. DOI: 10.1037/1082-989X.2.3.292
  • Estrada, E. (2015). Introduction to Complex Networks: Structure and Dynamics. Evolutionary Equations with Applications in Natural Sciences. Lecture Notes in Mathematics 2126. J. Banasiak, M. & M. Mokhtar-Kharroubi (eds.). p. 93-131. DOI 10.1007/978-3-319-11322-7__3.
  • Fagiolo, G., Reyes, J. & Schiavo, S. (2010). The Evolution of the World Trade Web: A Weighted Network Analysis. Journal of Evolutionary Economics, 20, 479-514. DOI: 10.1007/s00191-009-0160-x.
  • Fuge, M., Tee, K. & Agogino, A. Network Analysis of Collaborative Design Networks: A Case Study of OpenIDEO. http://www.markfuge.com/papers/fuge_tee_openideo_jcise_final_2013.pdf, 14.03.2016.
  • Grazzini, J. & Spelta, A. (2015). An Empirical Analysis of the Global Input-Output Network and Its Evolution. Universite Cattolica del Sacro Cuore, Working Paper Series , 31, 1-28.
  • Hein, O., Schwind, M. & König, W. (2006). Scale-Free Networks – The Impact of Fat Tailed Degree Distribution on Diffusion and Communication Processes. Wirtschaftsinformatik, 48, 267-275.
  • Howell, A. (2012). Network statistics and modeling the global trade economy: exponential random graph models and latent space models: is geography dead?. unpublished thesis, University of California.
  • Kleinberg, J.M. (1999). Authoritative Sources in a Hyperlinked Enironment. 1-34.
  • Kolaczyk, E. (2009). Statistical Analysis of Network Data Methods and Models. Springer.
  • Leon, C., Perez, J. (2013). Authority Centrality and Hub Centrality as Metrics of Systemic Importance of Financial Market Infrastructure. Borradores de Economia, 754, 1-24.
  • Leon Rincon, C. , Machado, C. & Paipilla, S. (2015). Identifying Central Bank Liquidity Super-Spreader in Interbank Funds Network. ”, EBC Discussion Paper, Vol. 2015-010, 1-43.
  • Leon, C. & Berndsen, R.J. (2014). Rethinking Financial Stability: Challenges Arising from Financial Networks’ Modular Scale-free Architecture. 1-37.
  • Lovric, M. (2010). Skewness. International Encyclopedia of Statistical Science, Springer: New York.
  • Milberg, W.& Winkler, D. (2013). Outsourcing Economics – Global Value Chains in Capitalist Development, Cambridge University Press, 1st published.
  • Mitchell, M. (2006). Complex Systems: Network Thinking. SFI Working Paper, 2006-10-036.
  • Mitchell, M. (2009). Complexity A Guided Tour. Oxford University Press.
  • Newman, M.E.J. (2010). Networks An Introduction.
  • Newman, M.E.J. Mixing Patterns in Network. http://arxiv.org/pdf/cond-mat/0209450v2.pdf
  • OECD (2009). Applications of Complexity Science for Public Policy- New Tools for Finding Unanticipated Consequences and Unrealized Opportunities. 1-25.
  • Reichardt, J. (2009). Introduction to Complex Networks. Springer-Verlag, Berlin Heidelberg.
  • Soyyiğit, S. & Eren, E. (2016). Network Approach to Input-Output Analysis: The Case of Turkey. Proceedings of the 2nd Annual International Conference on Social Science, Vol.2. Istanbul, 822-839.
  • Timmer, M. , Dietzenbacher, E., Los, B., Stehrer, R. & Vries, Gaaitzen, J. (2015). An Illustrated User Guide to the World Input-Output Database: the Case of Global Automative Production. Review of International Economics, 23 (3), 575-605. DOI: 10.1111/roie.12178.
  • Wong, Y.M. (2014). Fair Share of Supply Chain Responsibility for Low Carbon Manufacturing. Smart Manufacturing Innovation and Transformation: Interconnection and Intelligence, USA.
  • Wu, L. . Centrality of the Supply Chain Network. 5th Annual SWUFE Baruch Research Symposium, 1-24.
There are 31 citations in total.

Details

Journal Section Makaleler
Authors

Semanur Soyyiğit

Çiğdem Boz This is me

Publication Date December 25, 2017
Published in Issue Year 2017 Volume: 3 Issue: 2

Cite

APA Soyyiğit, S., & Boz, Ç. (2017). Global Input – Output Analysis: A Network Approach. Yildiz Social Science Review, 3(2), 89-102.