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The impact of the COVID-19 pandemic on China's economic structure: An input–output approach

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  • Han, Yang

Abstract

Recognizing the impact of COVID-19 on economic structure is an urgently required task for the post-pandemic era. However, studies have been hampered in undertaking this task by a lack of current data and the use of inappropriate methods. This paper fills the gap in the literature by applying a network analysis method using the newly released input–output tables of China and evaluating the structural impacts on the economy, including the changes in the sectoral closeness, betweenness, risk condition, and network backbone. The modelling results demonstrate that the pandemic has accelerated the structural transformation process of the Chinese economy: the traditional growth engines, such as the petroleum and finance industries, have lagged, whereas new growth engine sectors, including the digital services and scientific research industries, have expanded rapidly. Accordingly, we propose that the government formulate policies to stabilize old growth engine industries and foster new drivers to promote a sustainable economic recovery in China.

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  • Han, Yang, 2022. "The impact of the COVID-19 pandemic on China's economic structure: An input–output approach," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 181-195.
    • Handle: RePEc:eee:streco:v:63:y:2022:i:c:p:181-195
    DOI: 10.1016/j.strueco.2022.09.014
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    More about this item

    Keywords

    COVID-19 pandemic; Economic structure transformation; Input–output approach; Network analysis method;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions

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