IDEAS home Printed from https://ideas.repec.org/a/kap/netspa/v19y2019i3d10.1007_s11067-018-9428-8.html
   My bibliography  Save this article

Analyzing Diversity, Strength and Centrality of Cities Using Networks of Multinational Firms

Author

Listed:
  • Owais A. Hussain

    (PAF-Karachi Institute of Economics and Technology)

  • Faraz Zaidi

    (Region of Peel, Mississauga, Canada and PAF-Karachi Institute of Economics and Technology)

  • Céline Rozenblat

    (University of Lausanne)

Abstract

Cities play an important role in the regional, national and continental development of economies, as well as global trade and infrastructure. Most of this development revolves around the presence of multinational firms and the inter-connected systems formed by their linkages. Analyzing the networks formed by these multinational firms can uncover many interesting trends and patterns providing insight into not only the development of individual cities, but also the various world regions they belong to. In this paper, we are particularly interested in networks of cities from the year 2010 and 2013 in order to understand how cities have changed in the context of networks of multinational firms. We consider diversity, strength and centrality as the key indicators to measure the importance of a city and based on these indicators analyze how cities have changed their roles in the networks of multinational firms overtime. We also introduce a cumulative ranking based on these three indicators to position cities in terms of their importance in the world. This study not only strengthens previous findings from a network analysis perspective but it also reveals the cities with considerable growth and/or significant decline over the periods studied.

Suggested Citation

  • Owais A. Hussain & Faraz Zaidi & Céline Rozenblat, 2019. "Analyzing Diversity, Strength and Centrality of Cities Using Networks of Multinational Firms," Networks and Spatial Economics, Springer, vol. 19(3), pages 791-817, September.
  • Handle: RePEc:kap:netspa:v:19:y:2019:i:3:d:10.1007_s11067-018-9428-8
    DOI: 10.1007/s11067-018-9428-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11067-018-9428-8
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s11067-018-9428-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. César Ducruet & Laurent Beauguitte, 2014. "Network science and spatial science : Review and outcomes of a complex relationship," Post-Print hal-03246947, HAL.
    2. P.J. Taylor & G. Catalano & D.R.F. Walker, 2002. "Exploratory Analysis of the World City Network," Urban Studies, Urban Studies Journal Limited, vol. 39(13), pages 2377-2394, December.
    3. John H. Dunning & Sarianna M. Lundan, 2008. "Multinational Enterprises and the Global Economy, Second Edition," Books, Edward Elgar Publishing, number 3215.
    4. Allen J. Scott & Michael Storper, 2007. "Regions, Globalization, Development," Regional Studies, Taylor & Francis Journals, vol. 41(sup1), pages 191-205.
    5. Xiaoqian Sun & Sebastian Wandelt & Xianbin Cao, 2017. "On Node Criticality in Air Transportation Networks," Networks and Spatial Economics, Springer, vol. 17(3), pages 737-761, September.
    6. R. Kinney & P. Crucitti & R. Albert & V. Latora, 2005. "Modeling cascading failures in the North American power grid," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 46(1), pages 101-107, July.
    7. Matthew C. Mahutga & Xiulian Ma & David A. Smith & Michael Timberlake, 2010. "Economic Globalisation and the Structure of the World City System: The Case of Airline Passenger Data," Urban Studies, Urban Studies Journal Limited, vol. 47(9), pages 1925-1947, August.
    8. Adelheid Holl & Ilaria Mariotti, 2018. "The Geography of Logistics Firm Location: The Role of Accessibility," Networks and Spatial Economics, Springer, vol. 18(2), pages 337-361, June.
    9. César Ducruet & Laurent Beauguitte, 2014. "Spatial Science and Network Science: Review and Outcomes of a Complex Relationship," Networks and Spatial Economics, Springer, vol. 14(3), pages 297-316, December.
    10. Rodriguez-Clare, Andres, 1996. "Multinationals, Linkages, and Economic Development," American Economic Review, American Economic Association, vol. 86(4), pages 852-873, September.
    11. Ronald Sean Wall & G. A. van der Knaap, 2011. "Sectoral Differentiation and Network Structure Within Contemporary Worldwide Corporate Networks," Economic Geography, Clark University, vol. 87(3), pages 267-308, July.
    12. Stefan Hennemann & Ben Derudder, 2014. "An Alternative Approach to the Calculation and Analysis of Connectivity in the World City Network," Environment and Planning B, , vol. 41(3), pages 392-412, June.
    13. Arthur S. Alderson & Jason Beckfield & Jessica Sprague-Jones, 2010. "Intercity Relations and Globalisation: The Evolution of the Global Urban Hierarchy, 1981—2007," Urban Studies, Urban Studies Journal Limited, vol. 47(9), pages 1899-1923, August.
    14. Iapadre, P. Lelio & Tajoli, Lucia, 2014. "Emerging countries and trade regionalization. A network analysis," Journal of Policy Modeling, Elsevier, vol. 36(S1), pages 89-110.
    15. Goto, Akira, 1982. "Business groups in a market economy," European Economic Review, Elsevier, vol. 19(1), pages 53-70.
    16. András Bóta & Lauren M. Gardner & Alireza Khani, 2017. "Identifying Critical Components of a Public Transit System for Outbreak Control," Networks and Spatial Economics, Springer, vol. 17(4), pages 1137-1159, December.
    17. Efrat Blumenfeld-Lieberthal, 2009. "The Topology of Transportation Networks: A Comparison Between Different Economies," Networks and Spatial Economics, Springer, vol. 9(3), pages 427-458, September.
    18. Ronald Sean Wall & G. A. van der Knaap, 2011. "Sectoral Differentiation and Network Structure Within Contemporary Worldwide Corporate Networks," Economic Geography, Taylor & Francis Journals, vol. 87(3), pages 267-308, July.
    19. Flaviano Morone & Hernán A. Makse, 2015. "Influence maximization in complex networks through optimal percolation," Nature, Nature, vol. 524(7563), pages 65-68, August.
    20. Dimitrios Tsiotas & Serafeim Polyzos, 2018. "The Complexity in the Study of Spatial Networks: an Epistemological Approach," Networks and Spatial Economics, Springer, vol. 18(1), pages 1-32, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammed Adil Saleem & Faraz Zaidi & Céline Rozenblat, 2023. "World City Networks and Multinational Firms: An Analysis of Economic Ties Over a Decade," Networks and Spatial Economics, Springer, vol. 23(3), pages 559-580, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kirsten Martinus & Thomas Sigler & Iacopo Iacopini & Ben Derudder, 2019. "The role of tax havens and offshore financial centers in Asia-Pacific networks: evidence from firm-subsidiary connections," Asian Business & Management, Palgrave Macmillan, vol. 18(5), pages 389-411, November.
    2. Ben Derudder, 2021. "Network Analysis of ‘Urban Systems’: Potential, Challenges, and Pitfalls," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 112(4), pages 404-420, September.
    3. Nuria Gallego & José L. Zofío, 2018. "Trade Openness, Transport Networks and the Spatial Location of Economic Activity," Networks and Spatial Economics, Springer, vol. 18(1), pages 205-236, March.
    4. Miaoxi Zhao & Ben Derudder & Pingcheng Zhang & Peiqian Zhong, 2020. "An Expanded Bipartite Network Projection Algorithm for Measuring Cities’ Connections in Service Firm Networks," Networks and Spatial Economics, Springer, vol. 20(2), pages 479-498, June.
    5. Dimitrios TSIOTAS & Nikolaos AXELIS & Serafeim POLYZOS, 2022. "Detecting City-Dipoles In Greece Based On Intercity Commuting," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 11-30, June.
    6. Xingjian Liu & Ben Derudder & Frank Witlox & Michael Hoyler, 2014. "Cities As Networks within Networks of Cities: The Evolution of the City/Firm-Duality in the World City Network, 2000–2010," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 105(4), pages 465-482, September.
    7. Tsiotas, Dimitrios, 2021. "Drawing indicators of economic performance from network topology: The case of the interregional road transportation in Greece," Research in Transportation Economics, Elsevier, vol. 90(C).
    8. Boeing, Geoff, 2018. "Urban Spatial Order: Street Network Orientation, Configuration, and Entropy," SocArXiv qj3p5, Center for Open Science.
    9. Dimitrios Tsiotas & César Ducruet, 2021. "Measuring the effect of distance on the network topology of the Global Container Shipping Network," Post-Print halshs-03408185, HAL.
    10. Csomós György & Derudder Ben, 2014. "Ranking Asia-Pacific cities: Economic performance of multinational corporations and the regional urban hierarchy," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 25(25), pages 1-12, September.
    11. Nadia M. Viljoen & Johan W. Joubert, 2018. "The Road most Travelled: The Impact of Urban Road Infrastructure on Supply Chain Network Vulnerability," Networks and Spatial Economics, Springer, vol. 18(1), pages 85-113, March.
    12. Andrés Fielbaum & Sergio Jara-Diaz & Antonio Gschwender, 2017. "A Parametric Description of Cities for the Normative Analysis of Transport Systems," Networks and Spatial Economics, Springer, vol. 17(2), pages 343-365, June.
    13. Zachary P Neal, 2017. "Well connected compared to what? Rethinking frames of reference in world city network research," Environment and Planning A, , vol. 49(12), pages 2859-2877, December.
    14. Yang, Xiaolan & Wang, Rui & Guo, Dongmei & Sun, Weizeng, 2020. "The reconfiguration effect of China's high-speed railway on intercity connection ——A study based on media attention index," Transport Policy, Elsevier, vol. 95(C), pages 47-56.
    15. Laure Rousset & César Ducruet, 2020. "Disruptions in Spatial Networks: a Comparative Study of Major Shocks Affecting Ports and Shipping Patterns," Networks and Spatial Economics, Springer, vol. 20(2), pages 423-447, June.
    16. Giulia Masi & Giorgio Ricchiuti, 2020. "From FDI network topology to macroeconomic instability," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 15(1), pages 133-158, January.
    17. Bilong Shen & Weimin Zheng & Kathleen M. Carley, 2018. "Urban Activity Mining Framework for Ride Sharing Systems Based on Vehicular Social Networks," Networks and Spatial Economics, Springer, vol. 18(3), pages 705-734, September.
    18. Peng Gao & Dan He & Zhijing Sun & Yuemin Ning, 2020. "Characterizing functionally integrated regions in the Central Yangtze River Megaregion from a city‐network perspective," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1357-1379, September.
    19. Daniel Griffith & Yongwan Chun, 2015. "Spatial Autocorrelation in Spatial Interactions Models: Geographic Scale and Resolution Implications for Network Resilience and Vulnerability," Networks and Spatial Economics, Springer, vol. 15(2), pages 337-365, June.
    20. Bijun Wang & Rui Mao & Qin Gou, 2014. "Overseas Impacts of China's Outward Direct Investment," Asian Economic Policy Review, Japan Center for Economic Research, vol. 9(2), pages 227-249, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:netspa:v:19:y:2019:i:3:d:10.1007_s11067-018-9428-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.