Nagendra Shrestha

Interdisciplinary seminars
French-Japanese webinar

Nagendra Shrestha

Yokohama National University
Measuring Economic Importance of a Country in Global Context
Friday, March 29 2024| 10:00am to 11:00am

Gilles Dufrénot: gilles.dufrenot[at]
Kiyotaka Sato: sato[at]


Global economy is interlinked in complex manner with different countries in the World. Somehow it is difficult to measure absolute economic importance of a country, as other non-economic factors such as politics, geography, social conditions etc. also play significant roles to promote the economic linkages globally. Here, we attempt to measure an economic importance of a country with others by addressing global economic linkages as traced by Global Input-Output framework in 2020. The salient feature of this paper is to use newly complied Global Input-Output table in real terms (subject to industry-specific prices and country-specific exchange rates) by hypothetically extracting a country of interest from the GIO table. In contrast to the conventional method of hypothetical extraction that uses same input and value-added coefficient before and after the extraction to measure the inducements, we try to reflect the change in input and value-added coefficients caused by new trade structure under the assumption that the country of interest does not produce, consume, and trade with other countries hypothetically. Our preliminary results show that China and the US have largest influence on the induced global production and the global value-added respectively. Interestingly, Japanese importance seems to be weaker than Korean influence if the inducement of global production is concerned.

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