An analysis of the evolution of global financial network of the coordinated portfolio investment survey |
| |
Authors: | Sang Jin Ahn Jae Woong Jung Hyeng Keun Koo Seryoong Ahn |
| |
Affiliation: | 1. Department of Artificial Intelligence, Ajou University, Suwon, Republic of Korea;2. Institutional Consulting Team, Fund Evaluation Division, FnGuide Inc., Seoul, Republic of Korea;3. Department of Financial Engineering, Ajou University, Suwon, Republic of Korea;4. Division of Business Administration, Pukyong National University, Busan, Republic of Korea |
| |
Abstract: | In this study, we construct a directional global financial network using portfolio investment data from more than 200 countries during the first two decades of the 21st century and analyze the properties of the network. Through macroscopic analysis, we show that the network became denser and could be divided into central and peripheral groups. Microscopic analysis shows that, in addition to well-known financial-central countries, relatively less well-known countries played important roles in the global financial network. Further, each country's per capita GDP is positively correlated with its centrality in the network, and the correlation is stronger when measured with inbound investments than when measured with outbound investments. |
| |
Keywords: | centrality financial network grouping portfolio investment |
|
|