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Transport equipment network analysis: the value-added contribution.
Luis Gerardo Hernández García1
1Graduate School of Economics, Kyushu University, Fukuoka, Japan.
Journal of Economic Structures
|December 19, 2022
Summary
Network Science reveals the global transport equipment industry
Area of Science:
- Network Science
- Economic Complexity
- International Trade Analysis
Background:
- Limited application of network science to value-added trade.
- Focus on final goods trade overlooks complex interdependencies.
Purpose of the Study:
- Apply network science to analyze the transport equipment industry's value-added trade structure.
- Identify key players and network configurations.
Main Methods:
- Utilized UNCTAD-Eora Global Value Chain Database (2017).
- Employed network science properties and multi-regional input-output analysis.
- Applied community detection algorithms.
Main Results:
- The transport equipment value-added network is highly centralized, with developed nations dominating.
- Identified key emerging economies and regional sub-hubs (Eastern Europe, North America).
- Community detection revealed three distinct value-added flow clusters led by Germany, the US, and the UK.
Conclusions:
- Value-added trade flows deviate from geographical proximity, challenging traditional trade analysis.
- Complex network analysis is crucial for understanding intricate global trade structures.
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