International production and trade in a high-tech industry: A multilevel network analysis

Abstract We propose a multilevel network approach as an alternative framework to analyse the international organisation of an industrial sector. We present a novel application of a multilevel Exponential Random Graph Model to a multilevel network of firms linked by ownership at the micro level, countries linked by trade at the macro level, and a firm-county affiliation network linking the two in a high-tech industry. The results from the multilevel ERGM reveal a complex interplay between firm-level activity and international trade patterns. The approach can be extended to other industries to improve understanding of the international organisation of production, to map global value chains and to compare industries.

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