IDEAS home Printed from
   My bibliography  Save this paper

The Network of Inter-Regional Direct Investment Stocks across Europe


  • Stefano Battiston

    (Chair for Systems Design, ETH Z\"urich, Switzerland;)

  • Jo~ao F. Rodrigues

    (Chair for Systems Design, ETH Z\"urich, Switzerland;)

  • Hamza Zeytinoglu

    (Clarifix Ltd., London, UK)


We propose a methodological framework to study the dynamics of inter-regional investment flow in Europe from a Complex Networks perspective, an approach with recent proven success in many fields including economics. In this work we study the network of investment stocks in Europe at 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. Despite the intuitive value of this approach for EU policy making in economic development, to our knowledge there are no similar works in the literature yet. In this paper we focus on statistical distributions and scaling laws of activity, investment stock and connectivity degree both at the level of firms and at the level of regions. In particular we find that investment stock of firms is power law distributed with an exponent very close to the one found for firm activity. On the other hand investment stock and activity of regions turn out to be log-normal distributed. At both levels we find scaling laws relating investment to activity and connectivity. In particular, we find that investment stock scales with connectivity in a similar way as has been previously found for stock market data, calling for further investigations on a possible general scaling law holding true in economical networks.

Suggested Citation

  • Stefano Battiston & Jo~ao F. Rodrigues & Hamza Zeytinoglu, 2005. "The Network of Inter-Regional Direct Investment Stocks across Europe," Papers physics/0508206,
  • Handle: RePEc:arx:papers:physics/0508206

    Download full text from publisher

    File URL:
    File Function: Latest version
    Download Restriction: no

    More about this item


    Access and download statistics


    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:arx:papers:physics/0508206. 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: (arXiv administrators). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.