IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v96y2021ics0140988321000530.html

Complexity economic indexes for the energy market: Evidence during extreme global changes

Author

Listed:
  • Song, Pengcheng
  • Wang, Pang Paul
  • Zhang, Baozhen
  • Zhang, Xuan
  • Zong, Xiangyu

Abstract

This paper extends the complex economic index to measure the energy dependence of each country’s industrial structure, subject to the global trade framework. The Energy Dependence Competitiveness (EDC) Index and Energy Layout Complexity (ELC) Index are proposed, based on the Competitiveness and Economic Fitness (EF) algorithm. EDC reveals the industrial competitiveness of each country that relies on high energy-dependent industries. ELC reflects the fraction of energy-dependent industries involved in competitive industries. The empirical results show that EDC and ELC indices provide good explanations of economic performance, endowments and energy industries’ structure before, during and after the extreme change in the Energy Market in 2008.

Suggested Citation

  • Song, Pengcheng & Wang, Pang Paul & Zhang, Baozhen & Zhang, Xuan & Zong, Xiangyu, 2021. "Complexity economic indexes for the energy market: Evidence during extreme global changes," Energy Economics, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:eneeco:v:96:y:2021:i:c:s0140988321000530
    DOI: 10.1016/j.eneco.2021.105148
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988321000530
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2021.105148?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Emanuele Pugliese & Guido L Chiarotti & Andrea Zaccaria & Luciano Pietronero, 2017. "Complex Economies Have a Lateral Escape from the Poverty Trap," PLOS ONE, Public Library of Science, vol. 12(1), pages 1-18, January.
    2. Jean Imbs & Romain Wacziarg, 2003. "Stages of Diversification," American Economic Review, American Economic Association, vol. 93(1), pages 63-86, March.
    3. Grossman, Gene M & Helpman, Elhanan, 1989. "Product Development and International Trade," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1261-1283, December.
    4. Matthieu Cristelli & Andrea Gabrielli & Andrea Tacchella & Guido Caldarelli & Luciano Pietronero, 2013. "Measuring the Intangibles: A Metrics for the Economic Complexity of Countries and Products," PLOS ONE, Public Library of Science, vol. 8(8), pages 1-20, August.
    5. Pengcheng Song & Xuan Zhang & Yu Zhao & Liao Xu, 2020. "Exogenous Shocks on the Dual-country Industrial Network: A Simulation Based on the Policies during the COVID-19 Pandemic," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(15), pages 3554-3561, December.
    6. Vito D. P. Servedio & Paolo Butt`a & Dario Mazzilli & Andrea Tacchella & Luciano Pietronero, 2018. "A new and stable estimation method of country economic fitness and product complexity," Papers 1807.10276, arXiv.org, revised Oct 2018.
    7. Ding Liu & Weihong Sun & Xuan Zhang, 2020. "Is the Chinese Economy Well Positioned to Fight the COVID-19 Pandemic? the Financial Cycle Perspective," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2259-2276, August.
    8. Ricardo Hausmann & César Hidalgo, 2011. "The network structure of economic output," Journal of Economic Growth, Springer, vol. 16(4), pages 309-342, December.
    9. Dinh Hoang Bach Phan & Paresh Kumar Narayan, 2020. "Country Responses and the Reaction of the Stock Market to COVID-19—a Preliminary Exposition," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2138-2150, August.
    10. Gene M. Grossman & Elhanan Helpman, 1991. "Quality Ladders in the Theory of Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(1), pages 43-61.
    11. Cristelli,Matthieu Claudio Ascagne & Tacchella,Andrea & Cader,Masud Z. & Roster,Kirstin Ingrid & Pietronero,Luciano, 2017. "On the predictability of growth," Policy Research Working Paper Series 8117, The World Bank.
    12. Pinglin He & Hanlu Niu & Zhe Sun & Tao Li, 2020. "Accounting Index of COVID-19 Impact on Chinese Industries: A Case Study Using Big Data Portrait Analysis," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2332-2349, August.
    13. Dinh Hoang Bach Phan & Paresh Kumar Narayan, 2020. "Country Responses and the Reaction of the Stock Market to COVID-19—a Preliminary Exposition," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2138-2150, August.
    14. Felipe G Operti & Emanuele Pugliese & José S Andrade Jr. & Luciano Pietronero & Andrea Gabrielli, 2018. "Dynamics in the Fitness-Income plane: Brazilian states vs World countries," PLOS ONE, Public Library of Science, vol. 13(6), pages 1-20, June.
    15. Angelica Sbardella & Emanuele Pugliese & Luciano Pietronero, 2017. "Economic development and wage inequality: A complex system analysis," PLOS ONE, Public Library of Science, vol. 12(9), pages 1-26, September.
    16. Pinglin He & Hanlu Niu & Zhe Sun & Tao Li, 2020. "Accounting Index of COVID-19 Impact on Chinese Industries: A Case Study Using Big Data Portrait Analysis," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2332-2349, August.
    17. Lorenzo Caliendo & Fernando Parro, 2015. "Estimates of the Trade and Welfare Effects of NAFTA," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(1), pages 1-44.
    18. Jonathan Eaton & Samuel Kortum, 2002. "Technology, Geography, and Trade," Econometrica, Econometric Society, vol. 70(5), pages 1741-1779, September.
    19. Tisdell, Clement A., 2020. "Economic, social and political issues raised by the COVID-19 pandemic," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 17-28.
    20. Ding Liu & Weihong Sun & Xuan Zhang, 2020. "Is the Chinese Economy Well Positioned to Fight the COVID-19 Pandemic? the Financial Cycle Perspective," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2259-2276, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Khezri, Mohsen & Mamkhezri, Jamal & Heshmati, Almas, 2024. "Exploring non-linear causal nexus between economic growth and energy consumption across various R&D regimes: Cross-country evidence from a PSTR model," Energy Economics, Elsevier, vol. 133(C).

    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. Sui, Bo & Chang, Chun-Ping & Jang, Chyi-Lu & Gong, Qiang, 2021. "Analyzing causality between epidemics and oil prices: Role of the stock market," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 148-158.
    2. Chen, Yin-E & Li, Chunyan & Chang, Chun-Ping & Zheng, Mingbo, 2021. "Identifying the influence of natural disasters on technological innovation," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 22-36.
    3. DIODATO Dario, 2024. "Handbook of Economic Complexity for Policy," JRC Research Reports JRC138666, Joint Research Centre.
    4. Narayan, Paresh Kumar & Devpura, Neluka & Wang, Hua, 2020. "Japanese currency and stock market—What happened during the COVID-19 pandemic?," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 191-198.
    5. Padhan, Rakesh & Prabheesh, K.P., 2021. "The economics of COVID-19 pandemic: A survey," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 220-237.
    6. Song, Pengcheng & Ma, Xinxin & Zhang, Xuan & Zhao, Qin, 2021. "The influence of the SARS pandemic on asset prices," Pacific-Basin Finance Journal, Elsevier, vol. 67(C).
    7. Bannigidadmath, Deepa & Narayan, Paresh Kumar, 2021. "Commodity futures returns and policy uncertainty," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 364-383.
    8. Balland, Pierre-Alexandre & Broekel, Tom & Diodato, Dario & Giuliani, Elisa & Hausmann, Ricardo & O'Clery, Neave & Rigby, David, 2022. "Reprint of The new paradigm of economic complexity," Research Policy, Elsevier, vol. 51(8).
    9. Naidu, Dharmendra & Ranjeeni, Kumari, 2021. "Effect of coronavirus fear on the performance of Australian stock returns: Evidence from an event study," Pacific-Basin Finance Journal, Elsevier, vol. 66(C).
    10. Devi Prasad Dash & Narayan Sethi, 2022. "Pandemics, Lockdown and Economic Growth: A Region-Specific Perspective on Covid-19," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 25(Special I), pages 43-60, March.
    11. Si, Deng-Kui & Zhao, Bing & Li, Xiao-Lin & Ding, Hui, 2021. "Policy uncertainty and sectoral stock market volatility in China," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 557-573.
    12. Bing, Tao & Ma, Hongkun, 2021. "COVID-19 pandemic effect on trading and returns: Evidence from the Chinese stock market," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 384-396.
    13. LI, Yang & Luo, Jingqiu & Jiang, Yongmu, 2021. "Policy uncertainty spillovers and financial risk contagion in the Asia-Pacific network," Pacific-Basin Finance Journal, Elsevier, vol. 67(C).
    14. Ibrahim Tuğrul Çınar & Ilhan Korkmaz & Tüzin Baycan, 2022. "Regions’ economic fitness and sectoral labor productivity: Evidence from Turkey," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(3), pages 575-598, June.
    15. Harjoto, Maretno Agus & Rossi, Fabrizio & Lee, Robert & Sergi, Bruno S., 2021. "How do equity markets react to COVID-19? Evidence from emerging and developed countries," Journal of Economics and Business, Elsevier, vol. 115(C).
    16. Balland, Pierre-Alexandre & Broekel, Tom & Diodato, Dario & Giuliani, Elisa & Hausmann, Ricardo & O'Clery, Neave & Rigby, David, 2022. "The new paradigm of economic complexity," Research Policy, Elsevier, vol. 51(3).
    17. Freire, Clovis, 2019. "Economic diversification: A model of structural economic dynamics and endogenous technological change," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 13-28.
    18. Castañeda, Gonzalo & Pietronero, Luciano & Romero-Padilla, Juan & Zaccaria, Andrea, 2022. "The complex dynamic of growth: Fitness and the different patterns of economic activity in the medium and long terms," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 231-246.
    19. Sun, Ting-Ting & Su, Chi-Wei & Mirza, Nawazish & Umar, Muhammad, 2021. "How does trade policy uncertainty affect agriculture commodity prices?," Pacific-Basin Finance Journal, Elsevier, vol. 66(C).
    20. Ma, Xinxin & Zong, Xiangyu & Chen, Ximing, 2022. "Economic fitness and economy growth potentiality: Evidence from BRICS and OECD countries," Finance Research Letters, Elsevier, vol. 50(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:eee:eneeco:v:96:y:2021:i:c:s0140988321000530. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    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.