eprintid: 2753
rev_number: 14
eprint_status: archive
userid: 69
dir: disk0/00/00/27/53
datestamp: 2015-09-30 07:39:33
lastmod: 2015-09-30 07:39:33
status_changed: 2015-09-30 07:39:33
type: monograph
metadata_visibility: show
creators_name: Zhu, Zhen
creators_name: Morrison, Greg
creators_name: Puliga, Michelangelo
creators_name: Chessa, Alessandro
creators_name: Riccaboni, Massimo
creators_id: zhen.zhu@imtlucca.it
creators_id: greg.morrison@imtlucca.it
creators_id: michelangelo.puliga@imtlucca.it
creators_id: alessandro.chessa@imtlucca.it
creators_id: massimo.riccaboni@imtlucca.it
title: The Similarity of Global Value Chains: a Network-Based Measure
ispublished: submitted
subjects: HB
subjects: HD
subjects: HD61
divisions: EIC
full_text_status: public
monograph_type: imt_eic_working_paper
keywords: Keywords: Networks, Node Similarity, Input-Output Analysis, Global Value Chains, Vertical Specialization, International Trade. 
JEL Codes: C67, F10, F15
abstract: International trade has been increasingly organized in the form of global value chains
(GVCs) where different stages of production are located in dfferent countries. This
recent phenomenon has substantial consequences for both trade policy design at the
national or regional level and business decision making at the form level. In this paper,
we provide a new method for comparing GVCs across countries and over time. First,
we use the World Input-Output Database (WIOD) to construct both the upstream and
downstream global value networks, where the nodes are individual sectors in dfferent
countries and the links are the value-added contribution relationships. Second, we introduce
a network-based measure of node similarity to compare the GVCs between any
pair of countries for each sector and each year available in the WIOD. Our networkbased
similarity is a better measure for node comparison than the existing ones because
it takes into account all the direct and indirect relationships between country-sector
pairs, is applicable to both directed and weighted networks with self-loops, and takes
into account externally defined node attributes. As a result, our measure of similarity
reveals the most intensive interactions among the GVCs across countries and over time.
From 1995 to 2011, the average similarity between sectors and countries have clear increasing
trends, which are temporarily interrupted by the recent economic crisis. This
measure of the similarity of GVCs provides quantitative answers to important questions
about dependency, sustainability, risk, and competition in the global production
system.
date: 2015-09
date_type: published
number: 9
publisher: IMT Institute for Advanced Studies Lucca
pages: 30
institution: IMT Institute for Advanced Studies Lucca
issn: 2279-6894
citation:   Zhu, Zhen and Morrison, Greg and Puliga, Michelangelo and Chessa, Alessandro and Riccaboni, Massimo  The Similarity of Global Value Chains: a Network-Based Measure.  EIC working paper series  #9/2015    IMT Institute for Advanced Studies Lucca    ISSN 2279-6894.    (Submitted)   
document_url: http://eprints.imtlucca.it/2753/1/WP_2015_9.pdf