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International Trade Inoperability Input‐Output Model (IT‐IIM): Theory and Application

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  • Jeesang Jung
  • Joost R. Santos
  • Yacov Y. Haimes

Abstract

The inoperability input‐output model (IIM) has been used for analyzing disruptions due to man‐made or natural disasters that can adversely affect the operation of economic systems or critical infrastructures. Taking economic perturbation for each sector as inputs, the IIM provides the degree of economic production impacts on all industry sectors as the outputs for the model. The current version of the IIM does not provide a separate analysis for the international trade component of the inoperability. If an important port of entry (e.g., Port of Los Angeles) is disrupted, then international trade inoperability becomes a highly relevant subject for analysis. To complement the current IIM, this article develops the International Trade‐IIM (IT‐IIM). The IT‐IIM investigates the resulting international trade inoperability for all industry sectors resulting from disruptions to a major port of entry. Similar to traditional IIM analysis, the inoperability metrics that the IT‐IIM provides can be used to prioritize economic sectors based on the losses they could potentially incur. The IT‐IIM is used to analyze two types of direct perturbations: (1) the reduced capacity of ports of entry, including harbors and airports (e.g., a shutdown of any port of entry); and (2) restrictions on commercial goods that foreign countries trade with the base nation (e.g., embargo).

Suggested Citation

  • Jeesang Jung & Joost R. Santos & Yacov Y. Haimes, 2009. "International Trade Inoperability Input‐Output Model (IT‐IIM): Theory and Application," Risk Analysis, John Wiley & Sons, vol. 29(1), pages 137-154, January.
    • Handle: RePEc:wly:riskan:v:29:y:2009:i:1:p:137-154
    DOI: 10.1111/j.1539-6924.2008.01126.x
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    References listed on IDEAS

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    1. Adam Rose & Shu‐Yi Liao, 2005. "Modeling Regional Economic Resilience to Disasters: A Computable General Equilibrium Analysis of Water Service Disruptions," Journal of Regional Science, Wiley Blackwell, vol. 45(1), pages 75-112, February.
    2. Pu Jiang & Yacov Y. Haimes, 2004. "Risk Management for Leontief‐Based Interdependent Systems," Risk Analysis, John Wiley & Sons, vol. 24(5), pages 1215-1229, October.
    3. Bruce A. Blonigen & Wesley Wilson, 2006. "New Measures of Port Efficiency Using International Trade Data," NBER Working Papers 12052, National Bureau of Economic Research, Inc.
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    2. Wenping Xu & Zongjun Wang & Liu Hong & Ligang He & Xueguang Chen, 2015. "The uncertainty recovery analysis for interdependent infrastructure systems using the dynamic inoperability input–output model," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(7), pages 1299-1306, May.
    3. Balakrishnan, Srijith & Lim, Taehoon & Zhang, Zhanmin, 2022. "A methodology for evaluating the economic risks of hurricane-related disruptions to port operations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 58-79.
    4. Hossain, Niamat Ullah Ibne & Nur, Farjana & Hosseini, Seyedmohsen & Jaradat, Raed & Marufuzzaman, Mohammad & Puryear, Stephen M., 2019. "A Bayesian network based approach for modeling and assessing resilience: A case study of a full service deep water port," Reliability Engineering and System Safety, Elsevier, vol. 189(C), pages 378-396.
    5. Wu, Xianhua & Guo, Ji & Song, Shunfeng, 2023. "Influence of international trade disputes on the world industrial economic system based on inoperability input-output model," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 787-803.

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