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Commodity-specific triads in the Dutch inter-industry production network.

Marzio Di Vece1,2,3, Frank P Pijpers4,5, Diego Garlaschelli6,7,8

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Complex production networks show few significant triadic motifs at the individual commodity level. This finding allows for a simplified

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Area of Science:

  • Network Science
  • Economics
  • Economic Complexity

Background:

  • Triadic motifs are fundamental to understanding higher-order interactions in complex networks.
  • Production networks are crucial for analyzing economic shock propagation, but their commodity-level motif structure remains unclear.

Purpose of the Study:

  • To analyze binary and weighted triadic motifs in the Dutch inter-industry production network at the commodity group level.
  • To develop null models that account for node heterogeneity and link reciprocity.

Main Methods:

  • Analysis of triadic motifs in a disaggregated Dutch production network (187 commodity groups).
  • Development and application of null models to filter out node heterogeneity and reciprocity effects.
  • Comparison of motif structures in aggregate versus individual commodity layers.

Main Results:

  • The aggregate production network exhibits numerous triadic motifs.
  • Most individual commodity layers show no significant triadic motifs, with ~85% having two or fewer.
  • A 'triadic fingerprint' for each commodity can be identified.

Conclusions:

  • The limited presence of significant triadic motifs at the commodity level simplifies network analysis.
  • Product-specific networks can be reconstructed from partial pairwise information by controlling for reciprocity.
  • Findings aid statistical bureaus in identifying fine-grained structural information for policy analysis.