Comparison of sectoral structures between China and Japan: A network perspective

Abstract

Economic structure comparisons between China and Japan have long captivated development economists. To delve deeper into their sectoral differences from 1995 to 2018, we used the annual input-output tables (IOTs) of both nations to construct weighted and directed input-output networks (IONs). This facilitated deeper network analyses. Strength distributions underscored variations in inter-sector economic interactions. Weighted, directed assortativity coefficients encapsulated the homophily among connecting sectors' features. By adjusting emphasis in PageRank centrality, key sectors were identified. Community detection revealed their clustering tendencies among the sectors. As anticipated, the analysis pinpointed manufacturing as China's central sector, while Japan favored services. Yet, at a finer level of the specific sectors, both nations exhibited varied structural evolutions. Contrastingly, sectoral communities in both China and Japan demonstrated commendable stability over the examined duration.