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original: Economic complexity as network complication: Multiregional input-output structural path analysis

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  • Michael Sonis

    (Regional Economics Applications Laboratory, University of Illinois at Urbana-Champaign, IL 61801, USA)

  • Geoffrey J. D. Hewings

    (Regional Economics Applications Laboratory, University of Illinois at Urbana-Champaign, IL 61801, USA)

Abstract

This paper presents a description of some fundamental properties of networks of economic selfinfluence and transfer of economic influence within hierarchies of economic sub-systems using structural path analysis within a multiregional input-output system. In this fashion, exchange between sectors, activities and regions is viewed as a network that can be decomposed hierarchically; economic complexity is viewed as an emerging property of the process of network complication that accompanies the augmentation of inputs and the growing synergetic interactions between regional sub-systems. For the reasons of clarity, the cases of two and three regions are considered in detail. The treatment of the general case of n regions and the graph-theoretical description of the global augmentation process of the network complication is presented in two appendices, where the mathematical proofs can be found. It is expected that this analysis will provide a methodology that will be useful in understanding regional economic sustainability (i.e., spatial and temporal invariability), structural stability and structural changes in economic networks as well as providing insights into the role of internal and external trade between regions. To support this expectation, the detailed theoretical analysis of the block structural paths in the social accounting system is presented supplemented by economic analysis of the Indonesian social accounting matrices for 1975, 1980 and 1985.

Suggested Citation

  • Michael Sonis & Geoffrey J. D. Hewings, 1998. "original: Economic complexity as network complication: Multiregional input-output structural path analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 32(3), pages 407-436.
    • Handle: RePEc:spr:anresc:v:32:y:1998:i:3:p:407-436
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    Cited by:

    1. Liis LILL, 2008. "Assessing Economic Complexity in some OECD countries with Input-Output Based Measures," EcoMod2008 23800082, EcoMod.
    2. Roland Lantner & Didier Lebert, 2013. "Dominance, dependence and interdependence in linear structures. A theoretical model and an application to the international trade flows," Post-Print halshs-00825477, HAL.
    3. Llop, Maria & Ponce-Alifonso, Xavier, 2015. "Identifying the role of final consumption in structural path analysis: An application to water uses," Ecological Economics, Elsevier, vol. 109(C), pages 203-210.
    4. Ling Yang & James Thurlow & Michael L. Lahr, 2012. "The (Declining) Role of Households in Sustaining China's Economy: Structural Path Analysis for 1997-2007," WIDER Working Paper Series wp-2012-083, World Institute for Development Economic Research (UNU-WIDER).
    5. Konstantinos Mattas & C. Ciobanu & Demetrios Psaltopoulos, 2010. "Prospects of Changes in Regional Economic Structures since EU Accession," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 8(1), pages 55-72.
    6. Hidekazu Itoh, 2015. "An Interregional SAM Construction focused on Institutional Sectors and Structural Path Analysis in Japan," Post-Print hal-01123567, HAL.
    7. Sonis, Michael, 2002. "Complexity and complication in dynamics of linear spatial socio-economies, a synopsis," ERSA conference papers ersa02p044, European Regional Science Association.
    8. Nguyen, Canh Phuc & Su, Thanh Dinh, 2021. "Economic integration and economic complexity: The role of basic resources in absorptive capability in 40 selected developing countries," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 609-625.
    9. Roland Lantner & Didier Lebert, 2013. "Dominance, dependence and interdependence in linear structures. A theoretical model and an application to the international trade flows," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00825477, HAL.
    10. Karima Kourtit & Daniel Arribas-Bel & Peter Nijkamp, 2012. "High performers in complex spatial systems: a self-organizing mapping approach with reference to The Netherlands," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 501-527, April.
    11. Thurlow, James & Yang, Ling & Lahr, Michael L., 2012. "The (Declining) Role of Households in Sustaining China's Economy: Structural Path Analysis for 1997-2007," WIDER Working Paper Series 083, World Institute for Development Economic Research (UNU-WIDER).
    12. Lenzen, Manfred & Bhaduri, Anik & Moran, Daniel & Kanemoto, Keiichiro & Bekchanov, Maksud & Geschke, Arne & Foran, Barney, 2012. "The role of scarcity in global virtual water flows," Discussion Papers 133478, University of Bonn, Center for Development Research (ZEF).
    13. Karima Kourtit & Daniel Arribas-Bel & Peter Nijkamp, 2013. "High Performance in Complex Spatial Systems: A Self-Organizing Mapping Approach with Reference to The Netherlands," Tinbergen Institute Discussion Papers 13-194/VIII, Tinbergen Institute.
    14. Hidekazu Itoh, 2016. "Understanding of economic spillover mechanism by structural path analysis: a case study of interregional social accounting matrix focused on institutional sectors in Japan," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-20, December.
    15. João C. Lopes & João Dias & João F. Amaral, 2012. "Assessing economic complexity as interindustry connectedness in nine OECD countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(6), pages 811-827, January.
    16. 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.
    17. Da Costa, Kaio Glauber Vital & Castilho, Marta Reis & Puchet Anyul, Martín, 2021. "Production fragmentation, foreign trade and structural complexity: a comparative analysis of Brazil and Mexico," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    18. Roland Lantner & Didier Lebert, 2013. "Dominance, dependence and interdependence in linear structures. A theoretical model and an application to the international trade flows," Documents de travail du Centre d'Economie de la Sorbonne 13043, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    19. Deborah Roberts & David Newlands, 2010. "The Economic Integration of New Sectors in Rural Areas: A Case Study of the Shetland Economy," Environment and Planning A, , vol. 42(11), pages 2687-2704, November.
    20. Han, Yang & Zhang, Haotian & Zhao, Yong, 2021. "Structural evolution of real estate industry in China: 2002-2017," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 45-56.

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