Abstract
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.
Highlights
A recent work has studied the global structure of ownership network with respect to the issue of the corporate control [1]
Community Structure The transnational corporation (TNC) ownership network is composed of 23825 connected components
The present study focuses on the community structure of such network and to our knowledge it is the first investigation of communities in large-scale economic networks
Summary
A recent work has studied the global structure of ownership network with respect to the issue of the corporate control [1]. Instead, we carry out an in-depth community analysis [2] of the same network, in order to address questions concerning the level of geographical integration and the role of the financial sector in the global economy. To our knowledge this is the first investigation of communities in large-scale economic networks. Apart from the study of [23] on the Italian corporate board and ownership networks, the other community analyses have focused so far on correlation networks in stock markets [24] and in foreign exchange markets [25]
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