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The Community Structure of the Global Corporate NetworkStefania VitaliETH Zurich; Department of Physics, Università di Palermo, italy Stefano BattistonETH Zurich January 10, 2013 Swiss Federal Institute of Technology Zurich Abstract: We investigate the community structure of the global ownership network of transnational corporations. We find a pronounced organization in communities that cannot be explained by randomness. Despite the global character of this network, communities reflect first of all the geographical location of firms, while the industrial sector plays only a marginal role. We also analyze the network in which the nodes are the communities and the links are obtained by aggregating the links among firms belonging to pairs of communities. We analyze the network centrality of the top 50 communities and we provide the first quantitative assessment of the financial sector role in connecting the global economy.
Number of Pages in PDF File: 19 Keywords: Ownership Networks, Community Analysis, Firm Localization, Financial Sector JEL Classification: F64, L14, G2, G3 working papers seriesDate posted: January 11, 2013Suggested CitationContact Information
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