Sectoral role change in transition China: a network analysis from 1990 to 2005

Abstract

In this article, by using the data collected from input–output table, we conduct a detailed investigation on the evolution pattern during economy development of China from 1990 to 2005. By using network analysis at national, cluster and individual level, we find some interesting insights, also in order to identify the difference between cluster levels, we proposed a cluster centralization method to analyse the role of the cluster in the network. This study shows that during the transition process of China, there exist some similarity and differences in each selected time. Each period studied have some similar distributions of key sectors, including the cores, i.e. chemical industry, nonmetallic mineral products, construction, business. However, significant differences also exists, for example, the 2005 system is characterized as higher degrees of systemic connection and hierarchy, while the 1990s system has looser density and less centralization. Additionally, the high tech clusters (i.e. electronics and instruments) including high tech industry (i.e. electronics and telecommunications equipment manufacturers) has played a much more important role in 2005 than that in early 1990s. Also the high tech cluster and service cluster have contributed a lot to the transition and development of the whole country, the results also confirm that some theory concluded from developed country can also applied to developing economies such as China.