Causal Network Structure Analysis of Pharmaceutical and Biological Industry under the COVID-19

ABSTRACT

Nowadays, countries in the world are increasingly connected, and major emergencies affect the development of various industries, which makes particularly important to measure industry association.In this paper, we extract ordinary period structure before the outbreak of the COVID-19 and explode pharmaceutical biological industry network, then apply convergence cross mapping causal inference to describe the industry network, further establish the network of industry network topology to measure node and industry system risk. Empirical results show that the network structure of the pharmaceutical and biological industry is similar in the normal period and outbreak period before the epidemic, and the association within the industry was relatively stable. When the epidemic hit the network, the linkage of the pharmaceutical and biological industry is significantly enhanced, and the systemic risks and network efficiency are higher than usual. The network of pharmaceutical and biological industry is of strong robustness and strong ability to deal with emergencies, which provides some reference for grasping the stability of industry network structure and industry risk management under sudden shocks in pharmaceutical and biological industry. © 2021 IEEE.