Generalized Average Propagation Length and Its Application to Global Production Chain Analysis

Abstract

Abstract:

The traditional Average Propagation Length (APL) measures the length of linkage between two industries. Global production chain studies, however, require investigating the length of linkage between two groups of industries. To fill this gap, we develop the so-called Generalized Average Propagation Length (GAPL). The GAPL can measure the length of linkage between any two groups of indus-tries. The traditional APL and its variants (such as the "upstreamness measure") are all special cases of the GAPL. We investigate the position of countries in the global production chain of manufacturing products by means of GAPL. We find that countries that specialize in activities of producing intermediate products are located at the upstream of the global manufacturing production chain; countries that spe-cialize in activities of producing final products are located at the downstream.

Key words: APL, input-output model, global production chain, upstreamness

Chen Quanrun. Generalized Average Propagation Length and Its Application to Global Production Chain Analysis[J]. , 2018, 30(5): 39-46.

References

[1] Miller R. E., Blair P. D. Input-Output Analysis:Foundation and Extension[M]. New York:Cambridge University Press, 2009
[2] Dietzenbacher E., Romero I., Bosma N. S. Using Average Propagation Lengths to Identify Production Chains in the Andalusian[J]. Estudios de Economia Aplicada, 2005,23(2):405-422
[3] Lu X., Xu J. Explaining the Changes in ALPs by Identifying ALPs-Important Coefficients:An Empirical Application of China[J]. Journal of Systems Science and Complexity, 2013,26(3):383-406
[4] Oosterhaven J., Bouwmeester M. The Average Propagation Length:Conflicting Macro, Intra-industry, and Interindustry Conclusion[J]. International Regional Science Review, 2013,36(4):481-491
[5] Dietzenbacher E., Romero I. Production Chain in an Interregional Framework:Identification by Means of Average Propagation Lengths[J]. International Regional Science Review, 2007,30(4):362-383
[6] Inomata S. A New Measurement for International Fragmentation of the Production Process:An International Input-Output Approach[R]. IDE Discussion Paper NO. 175, 2008
[7] Antràs P., Chor D., Fally T., et al. Measuring the Upstreamness of Production and Trade Flows[J]. American Economic Review Papers and Proceedings, 2012,102(3):412-416
[8] Miller R. E., Temurshoev U. Output Upstreamness and Input Downstreamness of Industries/Countries in World Production[J]. In-ternational Regional Science Review, 2015,doi:10? 1177/0160017615608095
[9] Ju J., Yu X. Productivity, Profitability, Production and Export Structures along the Value Chain in China[J]. Journal of Compara-tive Economics, 2015,43(1):33-54
[10] Yu K. D. S., Tan R. R., Aviso K. B., et al. A Vulnerability Index for Post-Disaster Key Sector Prioritization[J]. Economic Sys-tems Research, 2014,26(1):81-97
[11] Timmer M. P., Los B., Stehrer R., et al. Fragmentation, Incomes and Jobs:An Analysis of European Competitiveness[J]. Eco-nomic Policy, 2013,28(76):613-661
[12] Foster-McGregor N., Stehrer R. Value Added Content of Trade:A Comprehensive Approach[J]. Economics Letters, 2013,120(2):354-357
[13] Koopman R., Wang Z., Wei S. Tracing Value-Added and Double Counting in Gross Exports[J]. American Economic Review, 2014,104(2):459-494
[14] Baldwin R. E., Lopez Gonzalez, J. Supply-Chain Trade:A Portrait of Global Patterns and Several Testable Hypotheses[R]. NBER Working Paper 18957, 2013
[15] Timmer M. P., Erumban A. A., Los B., et al. Slicing up Global Value Chains[J]. Journal of Economic Perspectives, 2014,28(2):99-118
[16] Timmer M. P. The World Input-Output Database (WIOD):Contents, Sources and Methods[R]. WIOD Working Paper Nr. 10, 2012
[17] Dietzenbacher E., Los B., Stehrer R., et al. The Construction of World Input-Output Tables in the WIOD Project[J]. Economic Systems Research, 2013,25(1):71-98