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The Community Structure of the Global Corporate Network


  • Stefania Vitali
  • Stefano Battiston


We investigate the community structure of the global ownership network of transnational corporations. We find a pronounced organization in communities that cannot be explained by randomness. Despite the global character of this network, communities reflect first of all the geographical location of firms, while the industrial sector plays only a marginal role. We also analyze the network in which the nodes are the communities and the links are obtained by aggregating the links among firms belonging to pairs of communities. We analyze the network centrality of the top 50 communities and we provide the first quantitative assessment of the financial sector role in connecting the global economy.

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  • Stefania Vitali & Stefano Battiston, 2013. "The Community Structure of the Global Corporate Network," Papers 1301.2363,
  • Handle: RePEc:arx:papers:1301.2363

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    References listed on IDEAS

    1. Stefania Vitali & James B. Glattfelder & Stefano Battiston, 2011. "The network of global corporate control," Papers 1107.5728,, revised Sep 2011.
    2. J. B. Glattfelder & S. Battiston, 2009. "Backbone of complex networks of corporations: The flow of control," Papers 0902.0878,, revised Aug 2009.
    3. V. Zlatic & G. Bianconi & A. Díaz-Guilera & D. Garlaschelli & F. Rao & G. Caldarelli, 2009. "On the rich-club effect in dense and weighted networks," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 67(3), pages 271-275, February.
    4. Giorgio Fagiolo & Javier Reyes & Stefano Schiavo, 2008. "The World-Trade Web: Topological Properties, Dynamics, and Evolution," LEM Papers Series 2008/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. Raffaele Corrado & Maurizio Zollo, 2006. "Small worlds evolving: governance reforms, privatizations, and ownership networks in Italy," Industrial and Corporate Change, Oxford University Press, vol. 15(2), pages 319-352, April.
    6. 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.
    7. Chinazzi, Matteo & Fagiolo, Giorgio & Reyes, Javier A. & Schiavo, Stefano, 2013. "Post-mortem examination of the international financial network," Journal of Economic Dynamics and Control, Elsevier, vol. 37(8), pages 1692-1713.
    8. Martin J. Conyon & Mark R. Muldoon, 2006. "The Small World of Corporate Boards," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(9-10), pages 1321-1343.
    9. Rahul Kaushik & Stefano Battiston, "undated". "Credit Default Swaps Drawup Networks: Too Tied To Be Stable?," Working Papers ETH-RC-12-013, ETH Zurich, Chair of Systems Design.
    10. Piccardi, Carlo & Calatroni, Lisa & Bertoni, Fabio, 2010. "Communities in Italian corporate networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(22), pages 5247-5258.
    11. Garlaschelli, Diego & Loffredo, Maria I., 2005. "Structure and evolution of the world trade network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 355(1), pages 138-144.
    12. Michael Boss & Helmut Elsinger & Martin Summer & Stefan Thurner, 2004. "Network topology of the interbank market," Quantitative Finance, Taylor & Francis Journals, vol. 4(6), pages 677-684.
    13. Javier A. Reyes & Camelia Minoiu, 2011. "A network analysis of global banking; 1978–2009," IMF Working Papers 11/74, International Monetary Fund.
    14. Stefania Vitali & Stefano Battiston, 2013. "The Community Structure of the Global Corporate Network," Papers 1301.2363,
    15. D. Garlaschelli & M. I. Loffredo, 2005. "Structure and Evolution of the World Trade Network," Papers physics/0502066,, revised May 2005.
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    Cited by:

    1. Heinrich, Torsten, 2016. "The Narrow and the Broad Approach to Evolutionary Modeling in Economics," MPRA Paper 75797, University Library of Munich, Germany.
    2. Frank Emmert-Streib & Aliyu Musa & Kestutis Baltakys & Juho Kanniainen & Shailesh Tripathi & Olli Yli-Harja & Herbert Jodlbauer & Matthias Dehmer, 2017. "Computational Analysis of the structural properties of Economic and Financial Networks," Papers 1710.04455,
    3. repec:ecr:col070:41255 is not listed on IDEAS
    4. Stefania Vitali & Stefano Battiston, 2013. "The Community Structure of the Global Corporate Network," Papers 1301.2363,

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