The Impact of International Crises on Maritime Transportation-Based Global Value Chains

21 Pages Posted: 3 Apr 2015

See all articles by Rodrigo Mesa-Arango

Rodrigo Mesa-Arango

Purdue University

Badri Narayanan Gopalakrishnan

University of Washington Seattle; ISM

Satish Ukkusuri

Purdue University

Date Written: April 1, 2015

Abstract

International trade has evolved into a complex network of global value chains (GVCs) that take advantage of the low cost and high scope of international maritime transportation (MT). Given the interconnectivity of GVCs, regional economic crises propagate rapidly. This paper uses complex network analysis to understand the impact of international crises on the evolution of MT GVCs. A novel representation of the maritime multi-commodity international trade network (MM-ITN) is proposed and analyzed as a weighted directed network. A suite of statistical network analysis tools are applied to understand its evolution over a period of 17 years. It is found that increasing the number of partners and the amount of trade over years is a generalized trend negatively impacted by crises. Few countries-sectors with enormous centrality make the MM-ITN vulnerable to crises. Resilience is slowly increasing over years. Crises show the importance of opening closed trading block and to flattening GVCs. The MM-ITN displays an increasing dissassortative behavior positive for global integration. MT GVCs have been reorganizing from mid 90s and stabilizing after 2008. The most important countries in the MM-ITN are USA, Germany, UK, China (after 2003), Japan, France, and Italy. The most important sectors are final demand, machinery\equipment, chemicals\rubber\plastic, electronic equipment, and motor vehicle parts.

Keywords: Trade, Network Science, Maritime Transportation

JEL Classification: F1

Suggested Citation

Mesa-Arango, Rodrigo and Narayanan, G. Badri and Ukkusuri, Satish, The Impact of International Crises on Maritime Transportation-Based Global Value Chains (April 1, 2015). Available at SSRN: https://ssrn.com/abstract=2588849 or http://dx.doi.org/10.2139/ssrn.2588849

Rodrigo Mesa-Arango

Purdue University ( email )

610 Purdue Mall
West Lafayette, IN 47907
United States

G. Badri Narayanan

University of Washington Seattle ( email )

Seattle, WA 98195
United States
98074 (Fax)

HOME PAGE: http://cintrafor.org/people/faculty.shtml

ISM ( email )

16167 Glenbrooks Place
surrey, BC - British Columbia v4n1t3
Canada

Satish Ukkusuri (Contact Author)

Purdue University ( email )

610 Purdue Mall
West Lafayette, IN 47907
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
93
Abstract Views
776
rank
341,683
PlumX Metrics