Using Network Method to Measure Financial Interconnection / Ying Xu, Jennifer Corbett.

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Xu, Ying

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Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w26499.Publication details: Cambridge, Mass. National Bureau of Economic Research 2019.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: This paper uses a new approach to measuring financial openness, highlighting interconnectedness in a network of financial flows. Applying an adapted version of eigenvector centrality, often used in network analysis, the new measure captures multidimensional and high-degree financial relations among countries. It provides a nuanced picture of financial integration and interconnectedness in the global and regional financial networks. The United Kingdom and the United States remain the 'core' in the global banking network, with all other countries scattered in the 'periphery'. The application of the new measure of financial integration to the empirical analysis reveals the nonlinear relationship between financial integration and output volatility.

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Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w26499 (Browse shelf(Opens below))	Not For Loan

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November 2019.

This paper uses a new approach to measuring financial openness, highlighting interconnectedness in a network of financial flows. Applying an adapted version of eigenvector centrality, often used in network analysis, the new measure captures multidimensional and high-degree financial relations among countries. It provides a nuanced picture of financial integration and interconnectedness in the global and regional financial networks. The United Kingdom and the United States remain the 'core' in the global banking network, with all other countries scattered in the 'periphery'. The application of the new measure of financial integration to the empirical analysis reveals the nonlinear relationship between financial integration and output volatility.