Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2005.11285.html
   My bibliography  Save this paper

Identifying Key Sectors in the Regional Economy: A Network Analysis Approach Using Input-Output Data

Author

Listed:
  • Fernando DePaolis
  • Phil Murphy
  • M. Clara DePaolis Kaluza
Abstract
By applying network analysis techniques to large input-output system, we identify key sectors in the local/regional economy. We overcome the limitations of traditional measures of centrality by using random-walk based measures, as an extension of Blochl et al. (2011). These are more appropriate to analyze very dense networks, i.e. those in which most nodes are connected to all other nodes. These measures also allow for the presence of recursive ties (loops), since these are common in economic systems (depending to the level of aggregation, most firms buy from and sell to other firms in the same industrial sector). The centrality measures we present are well suited for capturing sectoral effects missing from the usual output and employment multipliers. We also develop an R package (xtranat) for the processing of data from IMPLAN(R) models and for computing the newly developed measures.

Suggested Citation

  • Fernando DePaolis & Phil Murphy & M. Clara DePaolis Kaluza, 2020. "Identifying Key Sectors in the Regional Economy: A Network Analysis Approach Using Input-Output Data," Papers 2005.11285, arXiv.org, revised Sep 2022.
    • Handle: RePEc:arx:papers:2005.11285
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2005.11285
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Prem S. Laumas, 1975. "Key Sectors In Some Underdeveloped Countries," Kyklos, Wiley Blackwell, vol. 28(1), pages 62-79, January.
    2. Ana Salome Garcia Muniz & Antonio Morillas Raya & Carmen Ramos Carvajal, 2008. "Key Sectors: A New Proposal from Network Theory," Regional Studies, Taylor & Francis Journals, vol. 42(7), pages 1013-1030.
    3. Campbell, John, 1975. "Application of graph theoretic analysis to interindustry relationships : The example of Washington state," Regional Science and Urban Economics, Elsevier, vol. 5(1), pages 91-106, February.
    4. Sandro Montresor & Giuseppe Vittucci Marzetti, 2009. "APPLYING SOCIAL NETWORK ANALYSIS TO INPUT-OUTPUT BASED INNOVATION MATRICES: AN ILLUSTRATIVE APPLICATION TO SIX OECD TECHNOLOGICAL SYSTEMS FOR THE MIDDLE 1990s," Economic Systems Research, Taylor & Francis Journals, vol. 21(2), pages 129-149.
    5. Aroche Reyes, Fidel & Marquez Mendoza, Marco Antonio, 2012. "An economic network in Nonth America," MPRA Paper 61391, University Library of Munich, Germany, revised Nov 2014.
    6. Jorgenson, Dale W., 2016. "Econometric general equilibrium modeling," Journal of Policy Modeling, Elsevier, vol. 38(3), pages 436-447.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liis LILL, 2008. "Assessing Economic Complexity in some OECD countries with Input-Output Based Measures," EcoMod2008 23800082, EcoMod.
    2. Wang, Chengwei & Miao, Wang & Lu, Miaomiao, 2022. "Evolution of the Chinese industrial structure: A social network perspective," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    3. GARCIA-MUÑIZ, Ana Salome, 2013. "Modelling Linkages Versus Leakages Networks: The Case Of Spain," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 13(1), pages 43-54.
    4. García Muñiz, Ana Salomé, 2013. "Input–output research in structural equivalence: Extracting paths and similarities," Economic Modelling, Elsevier, vol. 31(C), pages 796-803.
    5. García Muñiz, Ana Salomé & Ramos Carvajal, Carmen, 2012. "Linkages, contagion and resilience: an input-output scope from the demand and supply side," MPRA Paper 59369, University Library of Munich, Germany.
    6. Theodore Tsekeris, 2017. "Network analysis of inter-sectoral relationships and key sectors in the Greek economy," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 12(2), pages 413-435, July.
    7. George E. Halkos & Kyriaki D. Tsilika, 2018. "A New Vision of Classical Multi-regional Input–Output Models," Computational Economics, Springer;Society for Computational Economics, vol. 51(3), pages 571-594, March.
    8. Ana Salome GARCIA MUÑIZ & Carmen RAMOS CARVAJAL, 2015. "Input-Output Linkages And Network Contagion In Greece:Demand And Supply View," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(2), pages 35-52.
    9. Aroche-Reyes, Fidel & García Muñiz, Ana Salomé, 2012. "Modelling economic structures from a Qualitative Input-Output Perspective: Greece in 2005 and 2010," MPRA Paper 44415, University Library of Munich, Germany.
    10. Prem Laumas & John Soper, 1979. "Notes on the structure of production: Market oriented and Soviet-type economies," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 115(2), pages 284-296, June.
    11. Scandizzo, Pasquale Lucio & Ferrarese, Cataldo, 2015. "Social accounting matrix: A new estimation methodology," Journal of Policy Modeling, Elsevier, vol. 37(1), pages 14-34.
    12. Guihai Yu & Lingpei Tang & Gang Peng & Chao Xiong, 2023. "Relevance Analysis of China’s Digital Industry," Sustainability, MDPI, vol. 15(18), pages 1-22, September.
    13. Katya Pérez-Guzmán & Isela-Elizabeth Téllez-León & Ali Kharrazi & Brian Fath & Francisco Venegas-Martínez, 2018. "What makes Input-Output Tables of Trade of Raw Material Goods Peculiar Networks? The World and Mexican Cases," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 13(4), pages 483-505, Octubre-D.
    14. Alp, Esra & Kök, Recep & Başkol, Murat Ozan, 2017. "Türkiye Ekonomisinde Sürükleyici Endüstri Analizi:2002-2012 Karşılaştırması [Key Sector Analysis in Turkish Economy: A Compare Between 2002-2012]," MPRA Paper 89952, University Library of Munich, Germany.
    15. Fabrizio Fusillo & Sandro Montresor & Giuseppe Vittucci Marzetti, 2021. "The global network of embodied R&D flows," Discussion Paper series in Regional Science & Economic Geography 2021-05, Gran Sasso Science Institute, Social Sciences, revised Apr 2021.
    16. Franco, Chiara & Montresor, Sandro & Vittucci Marzetti, Giuseppe, 2011. "On indirect trade-related R&D spillovers: The "Average Propagation Length" of foreign R&D," Structural Change and Economic Dynamics, Elsevier, vol. 22(3), pages 227-237, September.
    17. repec:rri:wpaper:200605 is not listed on IDEAS
    18. Francisco Miguel & Maria Llop & Antonio Manresa, 2014. "Sectoral productivity gains in two regional economies: key sectors from a supply-side perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 731-744, November.
    19. Francisco Benita & Serhad Sarica & Garvit Bansal, 2020. "Testing the static and dynamic performance of statistical methods for the detection of national industrial clusters," Papers in Regional Science, Wiley Blackwell, vol. 99(4), pages 1137-1157, August.
    20. Miguel, Francisco Javier de & Llop Llop, Maria & Manresa, Antonio, 1954-, 2011. "Simulating the Impact of Sectorial Productivity Gains on Two Regional Economies: Key Sectors from a Supply Side Perspective," Working Papers 2072/169681, Universitat Rovira i Virgili, Department of Economics.
    21. João C. Lopes & João Dias & João F. Amaral, 2012. "Assessing economic complexity as interindustry connectedness in nine OECD countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(6), pages 811-827, January.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2005.11285. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.