Exploring Causal Network Complexity in Industrial Linkages: A Comparative Study
Yongmei Ding1, Chao Huang1, Xubo Feng1
1Department of Mathematics and Statistics, College of Science, Wuhan University of Science and Technology, Wuhan 430065, China.
Abstract:
Industrial linkages play a crucial role in sustaining industrial agglomerations, driving economic growth, and shaping the spatial architecture of economic systems. This study explores the complexity of causal networks within the industrial ecosystems of China and the United States, using high-frequency economic data to compare the interdependencies and causal structures across key sectors. By employing the partial cross mapping (PCM) technique, we capture the dynamic interactions and intricate linkages among industries, providing a detailed analysis of inter-industry causality. Utilizing data from 32 Chinese industries and 11 United States industries spanning 2015 to 2023, our findings reveal that the United States, as a global leader in technology and finance, exhibits a diversified and service-oriented industrial structure, where financial and technology sectors are pivotal to economic propagation. In contrast, China's industrial network shows higher centrality in heavy industries and manufacturing sectors, underscoring its focus on industrial output and export-led growth. A comparative analysis of the network topology and resilience highlights that China's industrial structure enhances network stability and interconnectivity, fostering robust inter-industry linkages, whereas the limited nodal points in the United States network constrain its resilience. These insights into causal network complexity offer a comprehensive perspective on the structural dynamics and resilience of the economic systems in both countries.
Related Concept Videos
Sequence Networks of Rotating Machines
Zero-sequence current induces a voltage drop across the generator's neutral impedance and other...
Causality in Epidemiology
Circuit Terminology
A circuit, on the other hand, is also an interconnected system of electrical elements but must contain one or more closed paths.
Criteria for Causality: Bradford Hill Criteria - II
Classification of Systems-I
Homogeneity dictates that if an input x(t) is multiplied by a constant c, the output y(t) is multiplied by the same constant. Mathematically, this is expressed as:
Simplified Synchronous Machine Model
In this model, each generator is connected to a...


