Detecting the nation-based characteristics of industries in the global input-output network of networks

Abstract

Under the influence of national policies, development plans, and subsidies, industries from the same nation perform similarly and inherit a part of their nations' characteristics. Unlike the one-layer input-output network that treats industries as isolated, our model treats industries from the same nation as a relative tight community. Thus, the characteristics of industries are inherited from their nation, which is defined as the nation-based characteristics. To accurately account for the nation-based contributions of each industry, we construct a global input-output NoN (network of networks) model. The global input-output NoN is transformed from the international input-output tables based on hypermatrices and the network of networks model. Based on the global input-output NoN, we propose six nation-based indexes to assess different aspects of industries' nation-based contributions. Our network model and nation-based indexes are applied on the international input-output tables from 2010 to 2015. We confirm the applicability of our model and discover several interesting findings. Overall, the most important one is that some nonmanufacturing industries (e.g., health, education, and public administration) may be more critical than some significant manufacturing industries.