nep-net New Economics Papers
on Network Economics
Issue of 2016‒07‒16
four papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Assessing classical input output structures with trade networks: A graph theory approach By Halkos, George; Tsilika, Kyriaki
  2. Why Do Vulnerability Cycles Matter in Financial Networks? By Thiago Christiano Silva; Benjamin Miranda Tabak; Solange Maria Guerra
  3. European Cities and Foreign Investment Networks By Riccardo Crescenzi; Kerwin Datu; Simona Iammarino
  4. Relationship between past experience, social network participation and creative capacity: Vietnamese entrepreneurship survey By Quang-Hoi Vu; Thu Trang Vuong; Quan-Hoang Vuong

  1. By: Halkos, George; Tsilika, Kyriaki
    Abstract: We present data structures from multiregional multisectoral trade activities from the perspective of networks. To illustrate our approach we make use of trade patterns taken from three classical input-output models. Unlike other conventional approaches by which networks statistics are evaluated, here, emphasis is given on recovering the structure architecture of interrelations in the input-output model. By self-explanatory visual outputs we display the interaction of the trading partners, the number of trade links and the density of interrelations. Connectivity and density are quantified by evaluating the node degrees. Our network approach traces the feedback loops among regions and activities. Some global structural properties are also examined. Programming in Mathematica allows for the creation of iterative schemes explaining aspects of the nature of trade and the evolution of spatial trading/production cycles in growing trading systems. Mathematica’s environment enables interactive visual schemes and infinite number of experiments.
    Keywords: Trade data visualization; trade networks; Mathematica-based computations; graph theory.
    JEL: C63 C65 C67 C88 F10
    Date: 2016–07
  2. By: Thiago Christiano Silva; Benjamin Miranda Tabak; Solange Maria Guerra
    Abstract: We compare two widely employed models that estimate systemic risk: DebtRank and Differential DebtRank. We show that not only network cyclicality but also the average vulnerability of banks are essential concepts that contribute to widening the gap in the systemic risk estimates of both approaches. We find that systemic risk estimates are the same whenever the network has no cycles. However, in case the network presents cyclicality, then we need to inspect the average vulnerability of banks to estimate the underestimation gap. We find that the gap is small regardless of the cyclicality of the network when its average vulnerability is large. In contrast, the observed gap follows a quadratic behavior when the average vulnerability is small or intermediate. We show results using an econometric exercise and draw guidelines both on artificial and real-world financial networks
    Date: 2016–06
  3. By: Riccardo Crescenzi; Kerwin Datu; Simona Iammarino
    Abstract: Although one of the core questions in the study of multinational enterprises (MNEs) has been typically that of where their different operations take place, the spatial dimension of MNE investments and functions is still relatively underexplored in the literature. This paper investigates the networks formed by Foreign Direct Investment (FDI) by applying network analysis techniques drawn from the world city network literature. Data is extracted from the fDi Markets database to describe and analyse the geography of FDI flows between a set of 3,500 cities and towns within the European Union (EU) Member States and their neighbourhood. The paper identifies hierarchical patterns of relations between different types of locations, and gains a finer-scaled appreciation of sectoral and functional specialisations of different regions within Europe.
    Date: 2016–07
  4. By: Quang-Hoi Vu; Thu Trang Vuong; Quan-Hoang Vuong
    Abstract: The notions of entrepreneurship and creativity in developed economies, despite having gained attention among researchers, remain embryonic in numerous emerging economies. Being focused on entrepreneurs in a typical transitional and emerging market economy, Vietnam, this paper aims to empirically explore the influence that past entrepreneurial efforts may exert on the perceptions of entrepreneurs about their own creativity performance. The study also seeks to understand how entrepreneurs social networks contribute to perceived creativity capacity by entrepreneurs who participate in those societies. The empirical research results suggest that entrepreneurs with business experience and active networking engagement are more likely to believe in their own creativity. This knowledge and insights in turn offer some implications for addressing the lack of radical creativity among Vietnamese entrepreneurs.
    Keywords: Creativity/innovation; entrepreneurship; emerging economy; Vietnam
    JEL: M13 O33 P21 P27
    Date: 2016–07–08

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