Entropic measure unveils country competitiveness and product specialization in the World trade web

Teza, Gianluca; Caraglio, Michele; Stella, Attilio L.

doi:10.1038/s41598-021-89519-3

“…Among these indicators, indicator A comprises TC, while indicator B comprises AMS, EP, and RCA. Due to the varying degrees of variation exhibited by each indicator, Entropy-TOPSIS was employed to adjust the weights of each indicator, thereby deriving the indicator weights and measurements 28 , 29 .The advantages of choosing Entropy-Topsis are mainly reflected in the following three points: (1) The classical Topsis method assigns the same weights to each indicator by default, which may influence the results to a certain extent. In contrast, the use of Entropy-Topsis can reduce the subjective assignment of weights, thereby minimizing bias; (2) Entropy-Topsis, in comparison to other methods, transforms numerical values into a sorted evaluation, making it more convenient for the comprehensive evaluation of the international competitiveness of industries; (3) Through Entropy-Topsis, multiple basic indicators are integrated, making it more suitable for reflecting the comprehensive level of the research object, especially when it is characterized by complexity.…”

Section: Methodsmentioning

confidence: 99%

“…However, there are dissenting voices arguing that in the context of today's global value chain division of labor, a single RCA indicator cannot accurately capture competitiveness 26 , 27 . Therefore, we draw upon existing studies 20 , 28 , 29 and employ Entropy-Topsis to construct a comprehensive evaluation index system for assessing the international competitiveness of industries from a trade perspective.…”

Section: Literature Reviewmentioning

confidence: 99%

Evaluation and impact factors of international competitiveness of China’s cobalt industry from the perspective of trade networks

Xu,

Guo,

Xu

et al. 2024

Sci Rep

2

0

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In recent years, with the development of the new energy industry, the demand for cobalt as a raw material for power batteries has been increasing. However, China itself has a shortage of cobalt resources. Therefore, overcoming poor resource conditions and enhancing the international competitiveness of the cobalt industry have become urgent issues. This paper is based on global trade data on cobalt resources from 2007 to 2020. A panel regression model is constructed from the perspective of trade networks, and Entropy-Topsis is used to construct a comprehensive evaluation index system for the international competitiveness of critical nonferrous metals. This study empirically examines the impact of the trade network characteristics of cobalt resources on international competitiveness, assigns practical significance to trade network characteristic indicators, and analyses the overall competitiveness changes in the global cobalt industry chain and its upstream, midstream, and downstream sectors. The research findings reveal the following key points: (1) In recent years, the competitive focus of the cobalt industry chain in various countries has shifted from upstream and midstream to midstream and downstream, with increasingly fierce trade competition downstream, gradually tilting toward countries such as South Korea, Japan, and China. (2) Cobalt trade competition, which was initially characterized by competition among multiple countries, has gradually become more centralized and stable, with differences in the competitiveness of various countries occurring at different stages of the cobalt industry chain. (3) Network centrality and network heterogeneity both have a significant promoting effect on the international competitiveness of the industry, while network connectivity has a significant inhibitory effect on the improvement of international competitiveness.On this basis, the study also suggests some policy implications. The purpose of the study is to enhance the international competitiveness of China's cobalt industry from a trade perspective and to investigate the developments of cobalt trade between China and the rest of the world.

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“…The use of a single-indicator measurement has also been the subject of controversy and doubt 26,27 . Therefore, we draw upon existing studies 20,28,29 and employ Entropy-Topsis to construct a comprehensive evaluation index system for assessing the international competitiveness of industries from a trade perspective.…”

Section: Literature Reviewmentioning

confidence: 99%

Evaluation and impact factors of cobalt resource industrial international competitiveness: A perspective based on trade networks

Xu,

Guo,

Xu

et al. 2024

Preprint

0

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In recent years, with the development of the new energy industry, the demand for cobalt as a raw material for power batteries has been increasing. However, China itself has a shortage of cobalt resources. Therefore, overcoming poor resource conditions and enhancing the international competitiveness of the cobalt industry have become urgent issues. This paper is based on global trade data on cobalt resources from 2007 to 2020. A panel regression model is constructed from the perspective of trade networks, and Entropy-Topsis is used to construct a comprehensive evaluation index system for the international competitiveness of critical nonferrous metals. This study empirically examines the impact of the trade network characteristics of cobalt resources on international competitiveness, assigns practical significance to trade network characteristic indicators, and analyses the overall competitiveness changes in the global cobalt industry chain and its upstream, midstream, and downstream sectors. The research findings reveal the following key points: (1) In recent years, the competitive focus of the cobalt industry chain in various countries has shifted from upstream and midstream to midstream and downstream, with increasingly fierce trade competition downstream, gradually tilting toward countries such as South Korea, Japan, and China. (2) Cobalt trade competition, which was initially characterized by competition among multiple countries, has gradually become more centralized and stable, with differences in the competitiveness of various countries occurring at different stages of the cobalt industry chain. (3) Network centrality and network heterogeneity both have a significant promoting effect on the international competitiveness of the industry, while network connectivity has a significant inhibitory effect on the improvement of international competitiveness.

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“…Overbury [18] believed that in a closed-loop economic system, minimizing entropy could reduce economic costs, save resources, and control disasters. Teza [19] measured the complexity of national economic efficiency and product diversification through Shannon entropy, and demonstrated its results in a network model between two layers composed of 5016 (products) and 223 (countries) nodes. For waste utilization, Busu [20] constructed a mathematical model of circular economy, based on the second law of thermodynamics, he evaluated the process of circular economy in the EU, and verified the correctness of the results through Shannon entropy.…”

Section: The Complexity Of Dynamic Iterative Modelmentioning

confidence: 99%

“…The complexity of multi-layer price and information competition model Overbury [18]; Teza [19]; Busu [20]; Lou [21]…”

Section: Rapid Price or Output Changes Can Cause Chaosmentioning

confidence: 99%

The complex evolution of information quality improvement in competitive market

Wu

¹

,

Liu

²

,

Fu

³

2023

RAIRO-Oper. Res.

1

0

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Abstract. Information is important market resource. High-quality information is beneficial to increase enterprise’s reputation and reduce consumer’s verification cost. This paper constructs a two-layer dynamic model, in which enterprises simultaneously conduct price and information game. The goal of profit maximization integrates two types of games into one system. The complex evolution of the two-layer system are studied by equilibrium analysis, stability analysis, bifurcation diagram, entropy and Lyapunov exponent. It is found that improving the information quality through regulations will increase involution and reduce stability of the market. Then, the block chain technology is introduced into the model for improving information quality of the market. It is found that increasing enterprises’ willingness to adopt block chain can improve the information quality quickly and effectively, and that is verified by entropy value. Therefore, the application and promotion of new technologies are more effective than exogenous regulations for improving information quality in market .

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Entropic measure unveils country competitiveness and product specialization in the World trade web

Cited by 12 publications

References 34 publications

Evaluation and impact factors of international competitiveness of China’s cobalt industry from the perspective of trade networks

Evaluation and impact factors of international competitiveness of China’s cobalt industry from the perspective of trade networks

Evaluation and impact factors of cobalt resource industrial international competitiveness: A perspective based on trade networks

The complex evolution of information quality improvement in competitive market

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