Which Sectors of a Modern Economy are Most Central?

26 Pages Posted: 23 Sep 2010

See all articles by Florian Bloechl

Florian Bloechl

affiliation not provided to SSRN

Fabian J. Theis

Technische Universität München (TUM); Helmholtz Zentrum München - Institute of Computational Biology

Fernando Vega-Redondo

Universidad de Alicante - Department of Economic Analysis; European University Institute; Bocconi University

Eric O'Neill Fisher

California State Polytechnic University, San Luis Obispo - Orfalea College of Business

Date Written: September 23, 2010

Abstract

We analyze input-output matrices for a wide set of countries as weighted directed networks. These graphs contain only 47 nodes, but they are almost fully connected and many have nodes with strong self-loops. We apply two measures: random walk centrality and one based on count-betweenness. Our findings are intuitive. For example, in Luxembourg the most central sector is “Finance and Insurance” and the analog in Germany is “Wholesale and Retail Trade” or “Motor Vehicles”, according to the measure. Rankings of sectoral centrality vary by country. Some sectors are often highly central, while others never are. Hierarchical clustering reveals geographical proximity and similar development status.

Suggested Citation

Bloechl, Florian and Theis, Fabian J. and Vega-Redondo, Fernando and Vega-Redondo, Fernando and Vega-Redondo, Fernando and Fisher, Eric O'Neill, Which Sectors of a Modern Economy are Most Central? (September 23, 2010). CESifo Working Paper Series No. 3175, Available at SSRN: https://ssrn.com/abstract=1681277 or http://dx.doi.org/10.2139/ssrn.1681277

Florian Bloechl

affiliation not provided to SSRN ( email )

Fabian J. Theis

Technische Universität München (TUM) ( email )

Arcisstrasse 21
Munich, DE 80333
Germany

Helmholtz Zentrum München - Institute of Computational Biology

Germany

Fernando Vega-Redondo

Universidad de Alicante - Department of Economic Analysis ( email )

Apdo. Correos, 99
03080 Alicante
Spain
+34 96 590 3616 (Phone)
+34 96 590 3898 (Fax)

European University Institute

Villa Schifanoia
133 via Bocaccio
Firenze (Florence), Tuscany 50014
Italy

Bocconi University ( email )

Via Sarfatti 25
Milan, MI 20136
Italy

Eric O'Neill Fisher (Contact Author)

California State Polytechnic University, San Luis Obispo - Orfalea College of Business ( email )

San Luis Obispo, CA 93407
United States

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