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Exploring The Spatial Structure of Interregional Supply Chain: A Multilayer Network Approach

Maulana, Ardian and Hokky, Situngkir (2024): Exploring The Spatial Structure of Interregional Supply Chain: A Multilayer Network Approach. Published in: BFI Working Paper Series No. WP-2-2024 (7 May 2024)

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This research aims to elucidate the organizational patterns of interregional economic interdependence to enhance our comprehension of the national economy's structure at a regional scale. Employing a multilayer network model, this study represents economic interdependence among Indonesian regions, utilizing the InterRegional Input-Output (IRIO) table. Through the application of various metrics, such as degree and strength distribution, assortativity coefficient, and global and local rich club coefficient, to the multilayer IRIO network, we uncover the organizational patterns of economic exchanges between provinces and economic sectors within Indonesia. Our findings demonstrate that a multilayer network approach reveals the heterogeneous and complex structure of the national economy at the regional level. By analyzing the assortativity pattern and global rich-club coefficient, we illustrate that the IRIO network exhibits a hierarchical organization, where significant provincial-sector nodes are interconnected and form dense rich clubs, extending from a few structural cores to peripheral regions. Additionally, we identify distinct connectivity patterns of non-rich nodes based on their incoming and outgoing relations. The insights gained from this study have implications for the macro-control of regional development.

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