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

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  • 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
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    Cited by:

    1. 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.
    2. 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.
    3. 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.

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