Who is at the Center of the Global Supply Chain?

26 Pages Posted: 19 Oct 2022

See all articles by Teodor Dyakov

Teodor Dyakov

EDHEC Business School

Hao Jiang

Michigan State University

Date Written: October 13, 2022


We study the network structure of the global supply chain, using trade in value-added data for 67 economies and 45 industries. We find that, in the global manufacturing network, a few hub economies such as China, US, Germany, Japan, and Russia drive the global and regional trade flows, but have low dependence on foreign sourcing. Building fine-grained global networks linking economy-industry pairs, we find that the structural importance of an economy-industry pair in the global supply chain drives its contribution to global economic and stock market fluctuations. These results provide fresh evidence supporting the network origins of global economic fluctuations.

Keywords: global supply chain, networks, centrality

JEL Classification: F1, F2, F4, F6, G1

Suggested Citation

Dyakov, Teodor and Jiang, Hao, Who is at the Center of the Global Supply Chain? (October 13, 2022). Proceedings of the EUROFIDAI-ESSEC Paris December Finance Meeting 2023, Available at SSRN: https://ssrn.com/abstract=4247068 or http://dx.doi.org/10.2139/ssrn.4247068

Teodor Dyakov (Contact Author)

EDHEC Business School ( email )

393 Promenade des anglais
Nice, 06202

HOME PAGE: http://www.teodordyakov.work

Hao Jiang

Michigan State University ( email )

315 Eppley Center
Department of Finance
East Lansing, MI 48824
United States

HOME PAGE: http://sites.google.com/site/haojiangfinance/

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