2013
DOI: 10.1111/twec.12080
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Measuring Global Economic Interdependence: A Hierarchical Network Approach

Abstract: This paper investigates the business cycle co‐movement across countries and regions since 1950 as a measure for quantifying the economic interdependence in the ongoing globalisation process. Our methodological approach is based on analysis of a correlation matrix and the networks it contains. Such an approach summarises the interaction and interdependence of all elements, and it represents a more accurate measure of the global interdependence involved in an economic system. Our results show (1) the dynamics of… Show more

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Cited by 15 publications
(9 citation statements)
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“…Its impact on the economy, politics and daily life has been unprecedented. The global scale of the pandemic is complex in nature because the interdependence of the planet has dramatically increased over the past 30 years ( Gomez et al , 2013 ; Ductor and Leiva-Leon, 2016 ). The coronavirus pandemic can be called a ‘black swan’, as defined by the complexity theory ( Taleb, 2010 ).…”
Section: Introductionmentioning
confidence: 99%
“…Its impact on the economy, politics and daily life has been unprecedented. The global scale of the pandemic is complex in nature because the interdependence of the planet has dramatically increased over the past 30 years ( Gomez et al , 2013 ; Ductor and Leiva-Leon, 2016 ). The coronavirus pandemic can be called a ‘black swan’, as defined by the complexity theory ( Taleb, 2010 ).…”
Section: Introductionmentioning
confidence: 99%
“…At the same time, it has a macro-level qualitative effect on an in-depth study of the flow between factors. Therefore, the similarity of industrial structure is often used by scholars to compare the structure between regions or industries themselves to derive some general conclusions, thus providing some inspiration for promoting sustainable development of other regions [36,37].…”
Section: Literature Reviewmentioning
confidence: 99%
“…Base on the concept of graph theory and complex network theory, countries can be regarded as nodes, the business cycle synchronization linkages of each country can be regarded as the connecting edges of nodes, and thus the BCSN is formed [ 21 ]. In empirical studies, pairwise correlation coefficient matrices can be used to represent the business cycle synchronization between different economies, and the topological structure of the BCSN can be studied by using complex network analysis method [ 12 , 25 ].…”
Section: Introductionmentioning
confidence: 99%