IDEAS home Printed from https://ideas.repec.org/a/eee/phsmap/v599y2022ics037843712200351x.html
   My bibliography  Save this article

A quantitative analysis of governance structures in the world economy

Author

Listed:
  • Iliopoulos, Panagiotis (Takis)

Abstract

In this article I explore a new quantitative approach for the analysis of buyer–supplier relationships in GVCs. Following the growing literatures of complex and social network analysis, I estimate the degree of hierarchicality of GVCs, taking into account the information of economic transactions between sectors in 190 countries of the world economy, gathered within the structures of the Global Multi-Regional Input-Output Tables of the EORA Database. In that way, I explore the spatiotemporal evolution of the hierarchicality of value-chains and provide a quantitative link between the buyer–supplier relationships of global industries and the categories of governance structures proposed by the respective theories. To the best of my knowledge, this paper is the first attempt to empirically map and quantify governance structures in the world economy.

Suggested Citation

  • Iliopoulos, Panagiotis (Takis), 2022. "A quantitative analysis of governance structures in the world economy," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 599(C).
    • Handle: RePEc:eee:phsmap:v:599:y:2022:i:c:s037843712200351x
    DOI: 10.1016/j.physa.2022.127486
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S037843712200351X
    Download Restriction: Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000
    File URL: https://libkey.io/10.1016/j.physa.2022.127486?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Henry Wai-chung Yeung & Neil Coe, 2015. "Toward a Dynamic Theory of Global Production Networks," Economic Geography, Taylor & Francis Journals, vol. 91(1), pages 29-58, January.
    2. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    3. Bruno Carballa Smichowski & Cédric Durand & Steven Knauss, 2021. "Participation in global value chains and varieties of development patterns," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 45(2), pages 271-294.
    4. Pol Antras & Davin Chor & Thibault Fally & Russell Hillberry, 2012. "Measuring the Upstreamness of Production and Trade Flows," American Economic Review, American Economic Association, vol. 102(3), pages 412-416, May.
    5. Peiteng Shi & Jiang Zhang & Bo Yang & Jingfei Luo, 2014. "Hierarchicality of Trade Flow Networks Reveals Complexity of Products," Papers 1401.3103, arXiv.org.
    6. Baldwin, Richard & Venables, Anthony J., 2013. "Spiders and snakes: Offshoring and agglomeration in the global economy," Journal of International Economics, Elsevier, vol. 90(2), pages 245-254.
    7. De Backer, Koen & Miroudot, Sébastien, 2014. "Mapping global value chains," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37176, May.
    8. Yohanes Kadarusman & Khalid Nadvi, 2013. "Competitiveness and Technological Upgrading in Global Value Chains: Evidence from the Indonesian Electronics and Garment Sectors," European Planning Studies, Taylor & Francis Journals, vol. 21(7), pages 1007-1028, July.
    9. W. Q. Duan, 2007. "Universal scaling behaviour in weighted trade networks," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 59(2), pages 271-276, September.
    10. Daria Taglioni & Deborah Winkler, 2016. "Making Global Value Chains Work for Development," World Bank Publications - Books, The World Bank Group, number 24426.
    11. Halit Yanikkaya & Abdullah Altun, 2020. "The Impact of Global Value Chain Participation on Sectoral Growth and Productivity," Sustainability, MDPI, vol. 12(12), pages 1-19, June.
    12. repec:fth:michin:323 is not listed on IDEAS
    13. Adrian Wood, 1997. "How Trade Hurt Unskilled Workers," Palgrave Macmillan Books, in: Jitendralal Borkakoti & Chris Milner (ed.), International Trade and Labour Markets, chapter 7, pages 140-168, Palgrave Macmillan.
    14. Feenstra, Robert C. & Jensen, J. Bradford, 2012. "Evaluating estimates of materials offshoring from US manufacturing," Economics Letters, Elsevier, vol. 117(1), pages 170-173.
    15. Inácio Fernandes de Araújo & Fernando Salgueiro Perobelli & Weslem Rodrigues Faria, 2021. "Regional and global patterns of participation in value chains: Evidence from Brazil," International Economics, CEPII research center, issue 165, pages 154-171.
    16. Halit Yanıkkaya & Abdullah Altun & Pınar Tat, 2024. "The Impacts of Openness and Global Value Chains on the Performance of Turkish Sectors," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 71(2), pages 265-293.
    17. Coe, Neil M. & Yeung, Henry Wai-chung, 2015. "Global Production Networks: Theorizing Economic Development in an Interconnected World," OUP Catalogue, Oxford University Press, number 9780198703914.
    18. Ming Xu & Brad R. Allenby & John C. Crittenden, 2011. "Interconnectedness And Resilience Of The U.S. Economy," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 14(05), pages 649-672.
    19. William MILBERG, 2004. "The changing structure of trade linked to global production systems: What are the policy implications?," International Labour Review, International Labour Organization, vol. 143(1-2), pages 45-90, March.
    20. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    21. Gale Raj-Reichert, 2020. "Global Value Chains, Contract Manufacturers, and the Middle-Income Trap: The Electronics Industry in Malaysia," Journal of Development Studies, Taylor & Francis Journals, vol. 56(4), pages 698-716, April.
    22. Peter Wad, 2008. "The Development of Automotive Parts Suppliers in Korea and Malaysia: A Global Value Chain Perspective," Asia Pacific Business Review, Taylor & Francis Journals, vol. 14(1), pages 47-64.
    23. Milberg, William S.,, 2004. "The changing structure of international trade linked to global production systems : what are the policy implications?," ILO Working Papers 993701203402676, International Labour Organization.
    24. Deborah Winkler & William Milberg, 2012. "Bias in the ‘Proportionality Assumption’ Used in the Measurement of Offshoring," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 13(4), pages 39-60, October.
    25. Marcel P. Timmer & Abdul Azeez Erumban & Bart Los & Robert Stehrer & Gaaitzen J. de Vries, 2014. "Slicing Up Global Value Chains," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 99-118, Spring.
    26. Chiara Criscuolo & Jonathan Timmis, 2017. "The Relationship Between Global Value Chains and Productivity," International Productivity Monitor, Centre for the Study of Living Standards, vol. 32, pages 61-83, Spring.
    27. Koopman, Robert & Wang, Zhi & Wei, Shang-Jin, 2012. "Estimating domestic content in exports when processing trade is pervasive," Journal of Development Economics, Elsevier, vol. 99(1), pages 178-189.
    28. Peiteng Shi & Jiang Zhang & Bo Yang & Jingfei Luo, 2014. "Hierarchicality of Trade Flow Networks Reveals Complexity of Products," PLOS ONE, Public Library of Science, vol. 9(6), pages 1-10, June.
    29. Henry Wai-chung Yeung & Neil M. Coe, 2015. "Toward a Dynamic Theory of Global Production Networks," Economic Geography, Clark University, vol. 91(1), pages 29-58, January.
    30. Dani Rodrik, 2013. "Unconditional Convergence in Manufacturing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(1), pages 165-204.
    31. Diego Garlaschelli & Guido Caldarelli & Luciano Pietronero, 2003. "Universal scaling relations in food webs," Nature, Nature, vol. 423(6936), pages 165-168, May.
    32. repec:ilo:ilowps:370120 is not listed on IDEAS
    33. Johnson, George E & Stafford, Frank P, 1993. "International Competition and Real Wages," American Economic Review, American Economic Association, vol. 83(2), pages 127-130, May.
    34. Ewa Cieślik & Jadwiga Biegańska & Stefania Środa-Murawska, 2021. "Central and Eastern European States from an International Perspective: Economic Potential and Paths of Participation in Global Value Chains," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(13), pages 3587-3603, October.
    35. dine, Mohamedou Nasser, 2019. "Impact of Global Value Chains’ Participation on Employment in Turkey and Spillovers Effects," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 34(2), pages 308-326.
    36. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    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. Shen, Yi & Yang, Huang & Xie, Yuangcheng & Liu, Yang & Ren, Gang, 2023. "Adaptive robustness optimization against network cascading congestion induced by fluctuant load via a bilateral-adaptive strategy," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 630(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. Cédric Durand & David Flacher & Vincent Frigant, 2018. "Étudier les chaînes globales de valeur comme une forme d’organisation industrielle," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 13-34.
    2. Zhen Zhu & Michelangelo Puliga & Federica Cerina & Alessandro Chessa & Massimo Riccaboni, 2015. "Global Value Trees," PLOS ONE, Public Library of Science, vol. 10(5), pages 1-17, May.
    3. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    4. João Amador & Sónia Cabral, 2014. "Global Value Chains: Surveying Drivers, Measures and Impacts," Working Papers w201403, Banco de Portugal, Economics and Research Department.
    5. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    6. Lorenzo Cresti & Maria Enrica Virgillito, 2023. "Weak sectors and weak ties? Labour dependence and asymmetric positioning in GVCs," LEM Papers Series 2023/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    7. Amador, João & Cabral, Sónia, 2014. "Global value chains: surveying drivers and measures," Working Paper Series 1739, European Central Bank.
    8. Halit Yanikkaya & Abdullah Altun & Pınar Tat, 2022. "Does the Complexity of GVC Participation Matter for Productivity and Output Growth?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 2038-2068, August.
    9. Pierluigi Montalbano & Silvia Nenci & Carlo Pietrobelli, 2018. "Opening and linking up: firms, GVCs, and productivity in Latin America," Small Business Economics, Springer, vol. 50(4), pages 917-935, April.
    10. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    11. Pol Antràs & Alonso de Gortari, 2020. "On the Geography of Global Value Chains," Econometrica, Econometric Society, vol. 88(4), pages 1553-1598, July.
    12. Reshef, Ariell & Santoni, Gianluca, 2023. "Are your labor shares set in Beijing? The view through the lens of global value chains," European Economic Review, Elsevier, vol. 155(C).
    13. Can Li & Qi He & Han Ji & Shengguo Yu & Jiao Wang, 2023. "Reexamining the Impact of Global Value Chain Participation on Regional Economic Growth: New Evidence Based on a Nonlinear Model and Spatial Spillover Effects with Panel Data from Chinese Cities," Sustainability, MDPI, vol. 15(18), pages 1-31, September.
    14. Baldwin, Richard & Freeman, Rebecca & Theodorakopoulos, Angelos, 2022. "Horses for courses: measuring foreign supply chain exposure," Bank of England working papers 996, Bank of England.
    15. Zhu, Zhen & Morrison, Greg & Puliga, Michelangelo & Chessa, Alessandro & Riccaboni, Massimo, 2018. "The similarity of global value chains: A network-based measure," Network Science, Cambridge University Press, vol. 6(4), pages 607-632, December.
    16. Sabina Szymczak & Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2022. "Joint foreign ownership and global value chains effects on productivity: A comparison of firms from Poland and Germany," GUT FME Working Paper Series A 69, Faculty of Management and Economics, Gdansk University of Technology.
    17. Guannan Miao, 2023. "SouthAfricasintegrationintoglobalvaluechainsstatusrisksandchallenges," Working Papers 11040, South African Reserve Bank.
    18. Soo Yeon Kim & B. Peter Rosendorff, 2021. "Firms, states, and global production," Economics and Politics, Wiley Blackwell, vol. 33(3), pages 405-414, November.
    19. Luca Salvatici & Silvia Nenci, 2017. "New features, forgotten costs and counterfactual gains of the international trading system," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(4), pages 592-633.
    20. Victor Kummritz, 2015. "Global Value Chains: Benefiting the Domestic Economy?," IHEID Working Papers 02-2015, Economics Section, The Graduate Institute of International Studies.

    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:phsmap:v:599:y:2022:i:c:s037843712200351x. 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.journals.elsevier.com/physica-a-statistical-mechpplications/ .

    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.