An empirical analysis of the global input–output network and its evolution

This paper studies the global production network using a general equilibrium model calibrated on world input–output data. The analysis of propagation of idiosyncratic productivity shocks in the calibrated model allows to define a model-based network centrality measure. Such measure is used to investigate the topology of the global input–output network in 2014 and its evolution from 2000 to 2014. We find that new influential sectors have emerged over time. Moreover, we show that the global production system has evolved to become more sensitive to idiosyncratic productivity shocks and that this result is related to the increase of the intermediate input intensity of production.