IDEAS home Printed from https://ideas.repec.org/a/hin/complx/1306704.html
   My bibliography  Save this article

The Settlement Structure Is Reflected in Personal Investments: Distance-Dependent Network Modularity-Based Measurement of Regional Attractiveness

Author

Listed:
  • Laszlo Gadar
  • Zsolt T. Kosztyan
  • Janos Abonyi

Abstract

How are ownership relationships distributed in the geographical space? Is physical proximity a significant factor in investment decisions? What is the impact of the capital city? How can the structure of investment patterns characterize the attractiveness and development of economic regions? To explore these issues, we analyze the network of company ownership in Hungary and determine how are connections are distributed in geographical space. Based on the calculation of the internal and external linking probabilities, we propose several measures to evaluate the attractiveness of towns and geographic regions. Community detection based on several null models indicates that modules of the network coincide with administrative regions, in which Budapest is the absolute centre, and where county centres function as hubs. Gravity model-based modularity analysis highlights that, besides the strong attraction of Budapest, geographical distance has a significant influence over the frequency of connections and the target nodes play the most significant role in link formation, which confirms that the analysis of the directed company-ownership network gives a good indication of regional attractiveness.

Suggested Citation

  • Laszlo Gadar & Zsolt T. Kosztyan & Janos Abonyi, 2018. "The Settlement Structure Is Reflected in Personal Investments: Distance-Dependent Network Modularity-Based Measurement of Regional Attractiveness," Complexity, Hindawi, vol. 2018, pages 1-16, December.
    • Handle: RePEc:hin:complx:1306704
    DOI: 10.1155/2018/1306704
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/8503/2018/1306704.pdf
    Download Restriction: no
    File URL: http://downloads.hindawi.com/journals/8503/2018/1306704.xml
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2018/1306704?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
    ---><---

    References listed on IDEAS

    as
    1. Levy, Moshe, 2010. "Scale-free human migration and the geography of social networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(21), pages 4913-4917.
    2. Reynolds-Feighan, Aisling & McLay, Peter, 2006. "Accessibility and attractiveness of European airports: A simple small community perspective," Journal of Air Transport Management, Elsevier, vol. 12(6), pages 313-323.
    3. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    4. Lambiotte, Renaud & Blondel, Vincent D. & de Kerchove, Cristobald & Huens, Etienne & Prieur, Christophe & Smoreda, Zbigniew & Van Dooren, Paul, 2008. "Geographical dispersal of mobile communication networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(21), pages 5317-5325.
    5. Ash Amin, 1999. "An Institutionalist Perspective on Regional Economic Development," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 23(2), pages 365-378, June.
    6. Xiang, Ju & Hu, Ke, 2012. "Limitation of multi-resolution methods in community detection," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(20), pages 4995-5003.
    7. James E. Anderson, 2011. "The Gravity Model," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 133-160, September.
    8. del Campo, Cristina & Monteiro, Carlos M.F. & Soares, Joao Oliveira, 2008. "The European regional policy and the socio-economic diversity of European regions: A multivariate analysis," European Journal of Operational Research, Elsevier, vol. 187(2), pages 600-612, June.
    9. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
    10. Blank, Aharon & Solomon, Sorin, 2000. "Power laws in cities population, financial markets and internet sites (scaling in systems with a variable number of components)," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 287(1), pages 279-288.
    11. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, 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. Marcell Tamás Kurbucz & Attila Imre Katona & Zoltán Lantos & Zsolt Tibor Kosztyán, 2021. "The Role of Societal Aspects in the Formation of Official COVID-19 Reports: A Data-Driven Analysis," IJERPH, MDPI, vol. 18(4), pages 1-15, February.
    2. Judit Sulyok & Beáta Fehérvölgyi & Tibor Csizmadia & Attila I. Katona & Zsolt T. Kosztyán, 2023. "Does geography matter? Implications for future tourism research in light of COVID-19," Scientometrics, Springer;Akadémiai Kiadó, vol. 128(3), pages 1601-1637, March.
    3. Kosztyán, Zsolt Tibor & Király, Ferenc & Kurbucz, Marcell Tamás, 2024. "Európai cégek tulajdonosi szerkezetének dinamikus hálózatelemzése [Investigating the ownership structure of European companies using dynamic network analysis methods]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 57-85.

    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. (ed.), 0. "Research Handbook on Economic Diplomacy," Books, Edward Elgar Publishing, number 16053.
    2. V. I. Blanutsa, 2022. "Geographic Research of the Platform Economy: Existing and Potential Approaches," Regional Research of Russia, Springer, vol. 12(2), pages 133-142, June.
    3. Thibault Fally & James Sayre, 2018. "Commodity Trade Matters," 2018 Meeting Papers 172, Society for Economic Dynamics.
    4. Yulin Hou & Yun Wang & Hakan Yilmazkuday, 2023. "Gravity channels in trade," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 32(1), pages 37-65, January.
    5. Michael Knuchel, 2018. "Comparing estimation methods of trade costs," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 69(01), pages 81-106, December.
    6. Schaak, Henning, 2015. "The Impact of Free Trade Agreements on International Agricultural Trade: A Gravity Application on the Dairy Product Trade and the ASEAN-China-FTA," 55th Annual Conference, Giessen, Germany, September 23-25, 2015 211619, German Association of Agricultural Economists (GEWISOLA).
    7. Federico Carril-Caccia & Juliette Milgram-Baleix & Jordi Paniagua, 2019. "Foreign Direct Investment in oil-abundant countries: The role of institutions," PLOS ONE, Public Library of Science, vol. 14(4), pages 1-23, April.
    8. Anderson, James E. & Vesselovsky, Mykyta & Yotov, Yoto V., 2016. "Gravity with scale effects," Journal of International Economics, Elsevier, vol. 100(C), pages 174-193.
    9. Scott L. Baier & Amanda Kerr & Yoto V. Yotov, 2018. "Gravity, distance, and international trade," Chapters, in: Bruce A. Blonigen & Wesley W. Wilson (ed.), Handbook of International Trade and Transportation, chapter 2, pages 15-78, Edward Elgar Publishing.
    10. Head, Keith & Mayer, Thierry, 2014. "Gravity Equations: Workhorse,Toolkit, and Cookbook," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 131-195, Elsevier.
    11. Nhuong Tran & Norbert Wilson & Diane Hite, 2013. "5 Choosing the Best Model in the Presence of Zero Trade: A Fish Product Analysis," Frontiers of Economics and Globalization, in: Nontariff Measures with Market Imperfections: Trade and Welfare Implications, pages 127-148, Emerald Group Publishing Limited.
    12. Shekar Bose & Amina Marhoon Rashid Al Naabi & Houcine Boughanmi & Jaynab Begum Yousuf, 2019. "Domestic Ban Versus Border Rejections: A Case of Oman’s Fish Exports to the EU," SAGE Open, , vol. 9(1), pages 21582440188, January.
    13. Mulabdic, Alen & Rotunno, Lorenzo, 2022. "Trade barriers in government procurement," European Economic Review, Elsevier, vol. 148(C).
    14. Christian Elleby & Wusheng Yu & Qian Yu, 2018. "The Chinese Export Displacement Effect Revisited," IFRO Working Paper 2018/02, University of Copenhagen, Department of Food and Resource Economics.
    15. Álvarez, Inmaculada C. & Barbero, Javier & Rodríguez-Pose, Andrés & Zofío, José L., 2018. "Does Institutional Quality Matter for Trade? Institutional Conditions in a Sectoral Trade Framework," World Development, Elsevier, vol. 103(C), pages 72-87.
    16. Bo Xiong & Sixia Chen, 2014. "Estimating gravity equation models in the presence of sample selection and heteroscedasticity," Applied Economics, Taylor & Francis Journals, vol. 46(24), pages 2993-3003, August.
    17. Lopez-Gonzalez, Javier, 2012. "The Impact of Free Trade Agreements on Vertical Specialisation," Papers 442, World Trade Institute.
    18. Campi, Mercedes & Dueñas, Marco, 2019. "Intellectual property rights, trade agreements, and international trade," Research Policy, Elsevier, vol. 48(3), pages 531-545.
    19. Chahir Zaki & Fida Karam, 2017. "Why Don’t MENA Countries Trade More? The Curse of Bad Institutions," Working Papers 1148, Economic Research Forum, revised 10 2003.
    20. Abueg, Luisito, 2018. "Survey of gravity models of trade and labour, and a proposed trade-employment gravity model for the Philippines," MPRA Paper 87256, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    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:hin:complx:1306704. 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: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.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.