From Input–Output Tables to Networks: Visualizing and Quantifying East Asian Production Interdependence

Abstract

Purpose – East Asian economies, especially China, Japan, Korea, Taiwan, and Vietnam, have become deeply embedded in regional production networks, yet how this interconnectedness has evolved under adverse shocks remains underexplored. This study maps the dynamics of inter-country and inter-industry linkages, with particular attention to changes around the US–China trade conflict. Design/Methodology/Approach – The analysis uses the Asian Development Bank’s Multiregional Input–Output Tables for 2007–2023 and focuses on manufacturing across 14 industries. Interdependence is quantified using average propagation length (APL), which measures the average number of production steps through which cost-push and demand-pull effects transmit. To capture both downstream and upstream mechanisms, the study combines Leontief- and Ghosh-based propagation measures, and integrates these metrics with network analysis to visualize hubs, clusters, and shifts in connectivity over time. Findings – The regional network exhibits a clear reconfiguration of its core. The most interconnected sectors shift from basic metals to chemical products, and subsequently to electrical and optical equipment, indicating the growing centrality of electronics in East Asian value chains. The period of heightened trade tensions is associated with a more compact structure; propagation paths shorten and the set of economically relevant linkages becomes denser, consistent with rising direct interdependencies within the regional production system. Research Implications – By tracing 16 years of structural change and combining IO-based propagation metrics with network visualization, the study provides a replicable framework to diagnose how production networks rewire under shocks. The approach can be applied to other regions and episodes to distinguish changes in network “distance” from changes in linkage strength, and to identify shifting industrial hubs.