Input–output networks offer new insights of economic structure

CSS Publication Number: 
CSS19-40
Author(s): 
Abstract: 

An input–output (IO) model can be regarded as a network in which nodes represent sectors and directional, weighted links stand for IO transactions between sectors. The integration of IO models with modern network analysis can potentially provide additional insights for better understanding the structure of economies. We introduce the framework of IO network analysis including several popular metrics and tools. We also demonstrate the framework using a hypothesized six-sector economy. The World Input–Output Database (WIOD) 2009 model is used as well for a real-world demonstration. This research shows the potential of IO network analysis in understanding the structure of economies using IO models and data. Our work lays the ground for future studies in developing new methods for IO network analysis and real-world case studies.

Keyword: 
Input–output model
Network analysis
Economic structure
Publication Type: 
Journal Article
Physica A: Statistical Mechanics and its Applications
Date Published: 
August 1, 2019
Persistent URL: 
https://doi.org/10.1016/j.physa.2019.121178
Full Citation: 
Xu, Ming, and Sai Liang. (2019) “Input–output networks offer new insights of economic structure.” Physica A: Statistical Mechanics and its Applications 527(121178): 1-14.
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Publication Status: 
Published