An economic network in Nonth America

AROCHE REYES, FIDEL and MARQUEZ MENDOZA, MARCO ANTONIO (2012): An economic network in Nonth America.

Abstract

Economic structures can be studied as networks of industries linked through flows of commodities that - in turn - the consuming sectors use as inputs. The Input-Output (IO) model is a suitable framework for analysing those structures, because its main target is the study of interdependence between sectors. In this paper we use a North American multi-region IO table in order to identify an economic regional network that results from a subset of the links between sectors in the countries involved. Those are defined by the exchange of goods between industries. Further, a density measure is used as an indicator of the network complexity, explained by the integration level and shape between those economies. Our results show that the US is by far the most integrated economy in North America; it also determines the shape of the network structure. In contrast, Canada and Mexico maintain scarce direct relationships.

• Item Type: MPRA Paper
• English Title: An economic network in North America
• Language: English
• Keywords: Economic structure, economic network, Input-Output model, North America
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C67 - Input-Output Models; F - International Economics > F1 - Trade > F15 - Economic Integration; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O51 - U.S. ; Canada

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