World-trade web: Topological properties, dynamics, and evolution

Fagiolo, Giorgio; Reyes, Javier A.; Schiavo, Stefano

doi:10.1103/physreve.79.036115

Cited by 296 publications

(266 citation statements)

References 65 publications

(103 reference statements)

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“…The physics literature on complex economic networks has previously focused on boards of directors [12,13], market investments [10,14], stock price correlations [15,16], and international 1/24 trade [17,18,19]. Here we instead present a comprehensive cross-country analysis of 48 stock markets world wide.…”

Section: Introductionmentioning

confidence: 99%

Backbone of complex networks of corporations: The flow of control

2009

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We present a methodology to extract the backbone of complex networks based on the weight and direction of links, as well as on nontopological properties of nodes. We show how the methodology can be applied in general to networks in which mass or energy is flowing along the links. In particular, the procedure enables us to address important questions in economics, namely, how control and wealth are structured and concentrated across national markets. We report on the first cross-country investigation of ownership networks, focusing on the stock markets of 48 countries around the world. On the one hand, our analysis confirms results expected on the basis of the literature on corporate control, namely, that in AngloSaxon countries control tends to be dispersed among numerous shareholders. On the other hand, it also reveals that in the same countries, control is found to be highly concentrated at the global level, namely, lying in the hands of very few important shareholders. Interestingly, the exact opposite is observed for European countries. These results have previously not been reported as they are not observable without the kind of network analysis developed here.

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Section: Introductionmentioning

confidence: 99%

Backbone of complex networks of corporations: The flow of control

2009

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“…We conjecture that it may be present in other types of networks where ''rich-get-richer'' mechanisms are at work (although a degree preferential-attachment [1] alone does not produce a bow-tie). However, the fact that the core is so densely connected could be seen as a generalization of the ''rich-club phenomenon'' with control in the role of degree [3,28], Appendix S1, Section 8.2. These related open issues could be possibly understood by introducing control in a ''fitness model'' [29] of network evolution.…”

Section: Discussionmentioning

confidence: 99%

“…Therefore, a complex network analysis [1] is needed in order to uncover the structure of control and its implications. Recently, economic networks have attracted growing attention [2], e.g., networks of trade [3], products [4], credit [5,6], stock prices [7] and boards of directors [8,9]. This literature has also analyzed ownership networks [10,11], but has neglected the structure of control at a global level.…”

Section: Introductionmentioning

confidence: 99%

The Network of Global Corporate Control

Glattfelder

2012

Decoding Complexity

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The structure of the control network of transnational corporations affects global market competition and financial stability. So far, only small national samples were studied and there was no appropriate methodology to assess control globally. We present the first investigation of the architecture of the international ownership network, along with the computation of the control held by each global player. We find that transnational corporations form a giant bow-tie structure and that a large portion of control flows to a small tightly-knit core of financial institutions. This core can be seen as an economic ''superentity'' that raises new important issues both for researchers and policy makers.

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“…A weighted representation of the WTN has been investigated for example in Refs. [12,16,13]. Curiously, the additional information of edge weight is not always of greater explanatory power than binary network analysis [10,17].…”

Section: Introductionmentioning

confidence: 99%

A microscopic study of the fitness-dependent topology of the world trade network

Hoppe

Rodgers

2015

Physica A: Statistical Mechanics and its Applications

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Previous studies have suggested that the world-trade network belongs to the class of static hidden variable models. In this article we investigate the microscopic structure of the world trade network, that is the hidden variable correlation matrix of the network. The hidden variable is defined as a rank ordering of gross domestic products. This choice significantly reduces the noise in the statistical analysis found in previous studies. The hidden variable correlation matrix, that expresses the probability that a trade relationship between two countries of given fitness exists, suggests an attachment kernel that at least partially favours trading pairs or dissimilar fitness rather than the purely multiplicative one found previously. Additionally, we provide an in-depth look at the data source and reveal that first-order results, such as the degree distribution, exhibit significant qualitative differences depending on the data provider. Furthermore, we shed light on the intertemporal activity of international trade and point out that fluctuations occur mostly between countries with strong dissimilarities of fitness and connectivity.

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World-trade web: Topological properties, dynamics, and evolution

Cited by 296 publications

References 65 publications

Backbone of complex networks of corporations: The flow of control

Backbone of complex networks of corporations: The flow of control

The Network of Global Corporate Control

A microscopic study of the fitness-dependent topology of the world trade network

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