Document Type : Original Article
Authors
1
Ph.D. in Economics, Faculty of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran
2
Associate Professor, Department of Economics, Faculty of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran. salahmanesh@scu.ac.ir
3
Professor of Economics, Department of Economics, Faculty of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran.e.anvari@scu.ac.ir.
4
Assistant Professor, Department of Computer Science, Faculty of Mathematics and Computer Science, Shahid Chamran University of Ahvaz, Ahvaz, Iran
5
Assistant Professor, Department of Economics, Faculty of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran. salahmanesh@scu.ac.ir
Abstract
networks naturally diminishes, and the distribution structure and inequality at the macro level become more uniform. On the other hand, as emphasized by Carvalho (2014), the structure of the production network plays a crucial role in determining how microeconomic shocks originating in a firm or a specific technology are transmitted to other sectors and eventually to the entire economy.
The aim of this study is to examine the role of Iran’s production network structure in the transmission of micro shocks to the macroeconomic level. For this purpose, using input–output tables, Iran’s production network at the industry level was constructed, and its characteristics were described using various network indicators including indegree, outdegree, degree centrality, betweenness centrality, closeness centrality, and eigenvector centrality. Furthermore, by estimating the parameters of the Pareto distribution, the role of the production network structure in the propagation of micro shocks to macroeconomic fluctuations in Iran was evaluated.
The results indicate that Iran’s production network is characterized by “small-world” properties, but with a lower level of concentration compared to industrial economies. The existence of certain hub sectors such as finance, wholesale, and chemicals highlights their potential importance in shock transmission. However, the large values of the Pareto parameters suggest that in most years sectoral shocks are mainly absorbed within the respective industry, and only in specific periods (such as 2004) does the probability of their transmission to the macro level increase.
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