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Network Centrality and Key Economic Indicators: A Case Study

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Network Models in Economics and Finance

Part of the book series: Springer Optimization and Its Applications ((SOIA,volume 100))

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Abstract

We investigate the relations between radial and medial network centrality measures in different types of cross-border portfolio investment networks and macroeconomic indicators related to the financial conditions of central governments for most OECD (Organisation for Economic Co-operation and Development) countries during 2001–2011, where we consider the level of central government debt as percentage of national GDP (Gross Domestic Product) and the interest rates on long-term government bonds. Using methodology from the Composite Centrality framework for proper measure standardisation and comparison, we observe rich patterns of correlations for the majority of countries. This provides additional insights into topics such as the coupling of interest rates, observed during the European Debt Crisis 2009–2012, and points to underlying conflicts of interest on a national or international level, which may be taken into account when it comes to monetary and economic policy actions.

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Notes

  1. 1.

    See Table 2 in the Appendix for a summary of all acronyms.

  2. 2.

    We will focus on node measure in this chapter.

  3. 3.

    Data: “Inflation, GDP deflator (annual %)”.

  4. 4.

    Consider, e.g., the global S & P 1200.

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Author information

Authors and Affiliations

  1. Center for Chaos and Complex Networks, Department of Electronic Engineering, City University of Hong Kong, 83 Tat Chee Avenue, Kowloon, Hong Kong SAR, P. R. China

    Andreas Joseph & Guanrong Chen

Authors
  1. Andreas Joseph
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  2. Guanrong Chen
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Corresponding author

Correspondence to Andreas Joseph .

Editor information

Editors and Affiliations

  1. Laboratory of Algorithms and Technologies for Network Analysis, National Research University, Higher School of Economics, Nizhny Novgorod, Russia

    Valery A. Kalyagin

  2. Department of Industrial and Systems Engineering, University of Florida, Gainesville, Florida, USA

    Panos M. Pardalos

  3. Department of Mathematics, National Technical University of Athens, Athens, Greece

    Themistocles M. Rassias

1 Appendix: Tables

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Joseph, A., Chen, G. (2014). Network Centrality and Key Economic Indicators: A Case Study. In: Kalyagin, V., Pardalos, P., Rassias, T. (eds) Network Models in Economics and Finance. Springer Optimization and Its Applications, vol 100. Springer, Cham. https://doi.org/10.1007/978-3-319-09683-4_9

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