Transportation, Jobs, and Social Networks

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Hartman, B., B Clott, C., & Lyday, M. (2018). Transportation, Jobs, and Social Networks. Journal of Business Management and Economics, 6(01), 01–11. https://doi.org/10.15520/jbme.v6i01.2043
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Abstract

Logistics clusters in the US provide economic benefit, but expansion has not produced proportionate sector job growth. We hypothesize a network effect not accounted for in traditional analysis. Total Requirements matrix data for the 15 major US industry clusters provides a model of an economic social network. Using egonets from social network analysis, we propose network measures of value creation and leverage, a form of productivity, for each sector. We identify specific connected sectors where jobs and value are created. A quadrant assessment of our two measures classifies industry sectors as to amount of influence. Transportation and Wholesaling sectors create high leverage in the industries they touch, using relatively low creation of their own value added (margins on product). For development policy decisions, assessments of a sector’s impacts must include evaluating job creation in the proper networked sectors.

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