IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v9y2021i21p2795-d671925.html
   My bibliography  Save this article

The Spreading of Shocks in the North America Production Network and Its Relation to the Properties of the Network

Author

Listed:
  • Martha G. Alatriste-Contreras

    (Facultad de Economía, Universidad Nacional Autónoma de México, Ciudad de México 04510, Mexico)

  • Martín Puchet Anyul

    (Facultad de Economía, Universidad Nacional Autónoma de México, Ciudad de México 04510, Mexico)

Abstract

We evaluate the short-run effect of a shock in the manufacturing sector in the North America Production Network. We use input–output data for Canada, Mexico, the USA, and the North America region. With this data we represent the economies as networks and apply a network diffusion model and execute computer simulations according to different escenarios. We then study the relation between the effects of the shock and the structure of the networks by computing structural properties of sectors. Results show the limited effects of a shock on the manufacturing sector, and thus shed light on the heterogeneous impacts of the trade agreement of the region. They provide useful information to design an industrial policy focused on the development of the production network. In particular, we focus on recommendations for the Mexican economy.

Suggested Citation

  • Martha G. Alatriste-Contreras & Martín Puchet Anyul, 2021. "The Spreading of Shocks in the North America Production Network and Its Relation to the Properties of the Network," Mathematics, MDPI, vol. 9(21), pages 1-19, November.
  • Handle: RePEc:gam:jmathe:v:9:y:2021:i:21:p:2795-:d:671925
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/9/21/2795/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2227-7390/9/21/2795/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. John H. Miller & Scott E. Page, 2007. "Social Science in Between, from Complex Adaptive Systems: An Introduction to Computational Models of Social Life," Introductory Chapters, in: Complex Adaptive Systems: An Introduction to Computational Models of Social Life, Princeton University Press.
    2. Xu, Ming & Liang, Sai, 2019. "Input–output networks offer new insights of economic structure," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 527(C).
    3. 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.
    4. John H. Miller & Scott E. Page, 2007. "Complexity in Social Worlds, from Complex Adaptive Systems: An Introduction to Computational Models of Social Life," Introductory Chapters, in: Complex Adaptive Systems: An Introduction to Computational Models of Social Life, Princeton University Press.
    5. Martha Alatriste-Contreras, 2015. "The relationship between the key sectors in the european union economy and the intra-European Union trade," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-24, December.
    6. repec:zbw:bofrdp:2013_019 is not listed on IDEAS
    7. Martha G. Alatriste Contreras & Giorgio Fagiolo, 2014. "Propagation of economic shocks in input-output networks: A cross-country analysis," Post-Print hal-01474258, HAL.
    8. McNerney, James & Fath, Brian D. & Silverberg, Gerald, 2013. "Network structure of inter-industry flows," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(24), pages 6427-6441.
    9. Gerardo Fujii-Gambero & Rosario Cervantes-Martínez, 2017. "The weak linkages between processing exports and the internal economy. The Mexican case," Economic Systems Research, Taylor & Francis Journals, vol. 29(4), pages 528-540, October.
    10. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
    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. Tsekeris, Theodore, 2017. "Global value chains: Building blocks and network dynamics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 488(C), pages 187-204.
    2. Xing, Lizhi & Dong, Xianlei & Guan, Jun, 2017. "Global industrial impact coefficient based on random walk process and inter-country input–output table," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 471(C), pages 576-591.
    3. Martha G. Alatriste-Contreras & Igor Lugo, 2022. "Strategic sectors and the diffusion of the effect of a shock in Mexico for 2008 and 2012," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-23, December.
    4. Bier, Vicki & Gutfraind, Alexander, 2019. "Risk analysis beyond vulnerability and resilience – characterizing the defensibility of critical systems," European Journal of Operational Research, Elsevier, vol. 276(2), pages 626-636.
    5. Citera, Emanuele & Sau, Lino, 2019. "Complexity, Conventions and Instability: the role of monetary policy," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201924, University of Turin.
    6. Theodosio, Bruno Miller & Weber, Jan, 2023. "Back to the classics: R-evolution towards statistical equilibria," ifso working paper series 28, University of Duisburg-Essen, Institute for Socioeconomics (ifso).
    7. Jeffery S. McMullen & Dimo Dimov, 2013. "Time and the Entrepreneurial Journey: The Problems and Promise of Studying Entrepreneurship as a Process," Journal of Management Studies, Wiley Blackwell, vol. 50(8), pages 1481-1512, December.
    8. Andrew W. Bausch, 2014. "Evolving intergroup cooperation," Computational and Mathematical Organization Theory, Springer, vol. 20(4), pages 369-393, December.
    9. Levent Yilmaz, 2011. "Toward Multi-Level, Multi-Theoretical Model Portfolios for Scientific Enterprise Workforce Dynamics," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 14(4), pages 1-2.
    10. Mark Lubell & Adam Douglas Henry & Mike McCoy, 2010. "Collaborative Institutions in an Ecology of Games," American Journal of Political Science, John Wiley & Sons, vol. 54(2), pages 287-300, April.
    11. Gräbner, Claudius, 2016. "From realism to instrumentalism - and back? Methodological implications of changes in the epistemology of economics," MPRA Paper 71933, University Library of Munich, Germany.
    12. Michael Rothgang & Jochen Dehio & Bernhard Lageman, 2019. "Analysing the effects of cluster policy: What can we learn from the German leading-edge cluster competition?," The Journal of Technology Transfer, Springer, vol. 44(6), pages 1673-1697, December.
    13. Christopher J. Burman & Marota Aphane, 2017. "Complex HIV/AIDS Landscapes: Reflections on How ‘Path Creation’ Influenced an Action-Oriented Intervention," Systemic Practice and Action Research, Springer, vol. 30(1), pages 45-66, February.
    14. Niceto S. Poblador, 2011. "The Strategy Dilemma : Why Big Business Moves Seldom Pan Out as Planned," UP School of Economics Discussion Papers 201105, University of the Philippines School of Economics.
    15. Nakano, Satoshi & Nishimura, Kazuhiko, 2018. "Structural propagation in a production network with restoring substitution elasticities," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 512(C), pages 986-999.
    16. repec:lib:000cis:v:5:y:2017:i:1:p:26-34 is not listed on IDEAS
    17. Flaminio Squazzoni, 2010. "The impact of agent-based models in the social sciences after 15 years of incursions," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 18(2), pages 197-234.
    18. Fuat Oğuz, 2020. "Hayekian complexity and the role of regulation in electricity markets," Economic Affairs, Wiley Blackwell, vol. 40(3), pages 406-418, October.
    19. Mykola Odrekhivskyi & Orysya Pshyk-Kovalska & Volodymyr Zhezhukha & Iryna Ivanochko, 2022. "Intelligent Management of Enterprise Business Processes," Mathematics, MDPI, vol. 11(1), pages 1-15, December.
    20. Salter, Alexander William & Tarko, Vlad, 2017. "Polycentric banking and macroeconomic stability," Business and Politics, Cambridge University Press, vol. 19(2), pages 365-395, June.
    21. Li, Francis G.N. & Trutnevyte, Evelina & Strachan, Neil, 2015. "A review of socio-technical energy transition (STET) models," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 290-305.

    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:gam:jmathe:v:9:y:2021:i:21:p:2795-:d:671925. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.