Competitive Conditions in Global Value Chain Networks: An Assessment Using Entropy and Network Analysis
Year: 2020
Type: article
Abstract: We investigated competitive conditions in global value chains (GVCs) for a period of fifteen years (2000-2014), focusing on sector structure, countries' dominance and diversification. For this purpose, we used data from the World Input-Output Database (WIOD) and examined GVCs as weighted directed networks, where countries are the nodes and value added flows are the edges. We compared the in-and out-weighted degree centralization of the sectoral GVC networks in order to detect the most centralized, on the import or export side, respectively (oligopsonies and oligopolies). Moreover, we examined the in- and out-weighted degree centrality and the in- and out-weight entropy in order to determine whether dominant countries are also diversified. The empirical results reveal that diversification (entropy) and dominance (degree) are not correlated. Dominant countries (rich) become more dominant (richer). Diversification is not conditioned by competitiveness.
Source: Entropy
DOI: 10.3390/e22101068
Institution: Aristotle University of Thessaloniki
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,690
OpenAlex ID: W3088935735