The Network Of Inter-Regional Direct Investment Stocks Across Europe
We present an analysis of inter-regional investment stocks within Europe from a complex networks perspective. We consider two different levels: first, we compute the inward–outward investment stocks at the level of firms, based on ownership shares and number of employees; then we estimate the inward–outward investment stock at the level of regions in Europe, by aggregating the ownership network of firms, based on their headquarter location. To our knowledge, there is no similar approach in the literature so far, and we believe that it may lead to important applications for policy making. In the present paper, we focus on the statistical distributions and the scaling laws, while in further studies we will analyze the structure of the network and its relation to geographical space. We find that while outward investment and activity of firms are power law distributed with a similar exponent, for regions these quantities are better described by a log-normal distribution. At both levels we also find scaling laws relating investment to activity and connectivity. In particular, we find that investment stock scales as a power law of the connectivity, as previously found for stock market data.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 10 (2007)
Issue (Month): 01 ()
|Contact details of provider:|| Web page: http://www.worldscinet.com/acs/acs.shtml|
|Order Information:|| Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Garlaschelli, Diego & Battiston, Stefano & Castri, Maurizio & Servedio, Vito D.P. & Caldarelli, Guido, 2005.
"The scale-free topology of market investments,"
Physica A: Statistical Mechanics and its Applications,
Elsevier, vol. 350(2), pages 491-499.
- Yoshi Fujiwara & Corrado Di Guilmi & Hideaki Aoyama & Mauro Gallegati & Wataru Souma, 2003.
"Do Pareto-Zipf and Gibrat laws hold true? An analysis with European Firms,"
cond-mat/0310061, arXiv.org, revised Nov 2003.
- Fujiwara, Yoshi & Di Guilmi, Corrado & Aoyama, Hideaki & Gallegati, Mauro & Souma, Wataru, 2004. "Do Pareto–Zipf and Gibrat laws hold true? An analysis with European firms," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 335(1), pages 197-216.
- Battiston, Stefano, 2004. "Inner structure of capital control networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 338(1), pages 107-112.
- Eduardo Borensztein & Jose De Gregorio & Jong-Wha Lee, 1995.
"How Does Foreign Direct Investment Affect Economic Growth?,"
NBER Working Papers
5057, National Bureau of Economic Research, Inc.
- Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
- Gatti, Domenico Delli & Guilmi, Corrado Di & Gaffeo, Edoardo & Giulioni, Gianfranco & Gallegati, Mauro & Palestrini, Antonio, 2005. "A new approach to business fluctuations: heterogeneous interacting agents, scaling laws and financial fragility," Journal of Economic Behavior & Organization, Elsevier, vol. 56(4), pages 489-512, April.
- D. Garlaschelli & M. I. Loffredo, 2004. "Fitness-dependent topological properties of the World Trade Web," Papers cond-mat/0403051, arXiv.org, revised Oct 2004.
When requesting a correction, please mention this item's handle: RePEc:wsi:acsxxx:v:10:y:2007:i:01:p:29-51. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim)
If references are entirely missing, you can add them using this form.