The Community Structure of the Global Corporate Network

Swiss Federal Institute of Technology Zurich

19 Pages Posted: 11 Jan 2013  

Stefania Vitali

Università Politecnica delle Marche - Faculty of Economics; Department of Physics, Università di Palermo, italy; ETH Zurich

Stefano Battiston

University of Zurich - Department of Banking and Finance

Date Written: January 10, 2013

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.

Keywords: Ownership Networks, Community Analysis, Firm Localization, Financial Sector

JEL Classification: F64, L14, G2, G3

Suggested Citation

Vitali, Stefania and Battiston, Stefano, The Community Structure of the Global Corporate Network (January 10, 2013). Swiss Federal Institute of Technology Zurich. Available at SSRN: https://ssrn.com/abstract=2198974 or http://dx.doi.org/10.2139/ssrn.2198974

Stefania Vitali (Contact Author)

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

Department of Physics, Università di Palermo, italy ( email )

Viale delle Scienze, Ed. 17
Palermo, PA 90128
Italy

ETH Zurich ( email )

Weinbergstrasse 56/58
8092 Zurich, CH-1015
Switzerland

Stefano Battiston

University of Zurich - Department of Banking and Finance ( email )

Andreasstrasse 15
Zürich, 8050
Switzerland

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