Research on the Robustness of the Chinese Input-Output Network Based on Relative Entropy Theory.

ABSTRACT

The input-output (IO) network is the quantitative description of an IO-based economy in which nodes represent industries and edges connecting nodes represent the economic connection between industries. Robustness refers to the ability of tolerating perturbations that might affect the system's functional body. There is both practical and theoretical significance to explore the robustness of the IO network for economic development. In this paper, we probe the robustness of the Chinese IO network based on the relative entropy of the probability distribution of network parameters (node degree, strongest path betweenness, downstream closeness and upstream closeness) under random node or edge failure and intentional node or edge attack. It is found that the Chinese IO network shows relatively weak robustness when it is under intentional attack, but relatively strong robustness when it is under random failure. Our experiment also verifies the applicability and effectiveness of the relative entropy model in measuring the robustness of the IO network.