Exploring Causal Network Complexity in Industrial Linkages: A Comparative Study

探索产业联系中的因果网络复杂性:一项比较研究

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Abstract

Industrial linkages play a crucial role in sustaining industrial agglomerations, driving economic growth, and shaping the spatial architecture of economic systems. This study explores the complexity of causal networks within the industrial ecosystems of China and the United States, using high-frequency economic data to compare the interdependencies and causal structures across key sectors. By employing the partial cross mapping (PCM) technique, we capture the dynamic interactions and intricate linkages among industries, providing a detailed analysis of inter-industry causality. Utilizing data from 32 Chinese industries and 11 United States industries spanning 2015 to 2023, our findings reveal that the United States, as a global leader in technology and finance, exhibits a diversified and service-oriented industrial structure, where financial and technology sectors are pivotal to economic propagation. In contrast, China's industrial network shows higher centrality in heavy industries and manufacturing sectors, underscoring its focus on industrial output and export-led growth. A comparative analysis of the network topology and resilience highlights that China's industrial structure enhances network stability and interconnectivity, fostering robust inter-industry linkages, whereas the limited nodal points in the United States network constrain its resilience. These insights into causal network complexity offer a comprehensive perspective on the structural dynamics and resilience of the economic systems in both countries.

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