Financial Flows Centrality: Empirical Evidence using Bilateral Capital Flows

35 Pages Posted: 6 Jan 2020

See all articles by Rogelio Mercado

Rogelio Mercado

Asian Development Bank

Shanty Noviantie

South East Asian Central Banks (SEACEN) Research and Training Centre

Date Written: December 10, 2019

Abstract

This paper uses a dataset on bilateral capital flows to construct a financial centrality measure for 64 advanced and emerging economies from 2000-16 to capture an economy’s importance within the global financial flows network. The results highlight the varying significance of network systemic and idiosyncratic factors in explaining financial centrality across different types of investments and residency of investors. Most notably, the findings show that financial centres have deeper and more developed financial system, implying their importance in global financial intermediation.

Keywords: financial centrality, financial depth, network analysis

JEL Classification: D85, F21, F36, G15

Suggested Citation

Mercado, Rogelio and Noviantie, Shanty, Financial Flows Centrality: Empirical Evidence using Bilateral Capital Flows (December 10, 2019). Available at SSRN: https://ssrn.com/abstract=3501442 or http://dx.doi.org/10.2139/ssrn.3501442

Rogelio Mercado (Contact Author)

Asian Development Bank ( email )

6 ADB Avenue Mandaluyong City 1550
Metro Manila
Philippines

Shanty Noviantie

South East Asian Central Banks (SEACEN) Research and Training Centre ( email )

Level 5, Sasana Kijang, Bank Negara Malaysia
2 Jalan Dato’ Onn
Kuala Lumpur, 50480
Malaysia

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