Risk Transmission and Cascade Failures in Digital Economy Industrial Networks Under Emergency Impacts

Abstract

With the background of emergencies and the digital economy industry as the core, this study collected data from China’s 2020 input-output table, used network analysis technology to establish digital economy industrial networks, analyzed the structural characteristics of industrial networks and their risk transmission characteristics under the impact of various emergencies by establishing cascade failure simulation models. The results indicate that (1) the digital trading industry is an intermediary industry of the overall economy, which can control the flow of more resources than other digital economic industries; (2) different emergencies, shutdown thresholds, and impact degrees have different impacts. In addition to the dual impact of supply and demand, sudden systemic financial risks cause the most significant damage at the highest risk transmission speed; (3) the transmission of industrial risks has a certain time lag, but the failure of a key industry in the industrial chain may cause all industries to cease production in a short time; and (4) the industry with a more important position in the industrial network is more destructive to the economy after being impacted. This study can provide some theoretical reference for establishing the mechanism of emergency risk prevention and resolution.