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Financial flows centrality: Empirical evidence using bilateral capital flows

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  • Mercado, Rogelio
  • Noviantie, Shanty

Abstract

This paper uses a dataset on bilateral capital flows to construct a financial centrality measure for 64 advanced and emerging economies from 2000 to 2016 to capture an economy’s importance within the global financial flows network. The results underscore the varying significance of global and domestic factors in explaining an economy’s financial centrality as well as its likelihood of becoming a financial centre. The significance of global credit and domestic financial depth suggests the importance of financial regulation and supervision alongside financial deepening and development in safeguarding financial stability of financial centres.

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  • Mercado, Rogelio & Noviantie, Shanty, 2020. "Financial flows centrality: Empirical evidence using bilateral capital flows," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:intfin:v:69:y:2020:i:c:s1042443120301396
    DOI: 10.1016/j.intfin.2020.101255
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    1. Lepers, Etienne & Mercado, Rogelio, 2021. "Sectoral capital flows: Covariates, co-movements, and controls," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 75(C).

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    More about this item

    Keywords

    Financial centrality; Financial depth; Network analysis;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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