IDEAS home Printed from https://ideas.repec.org/a/eee/phsmap/v532y2019ics0378437119311057.html
   My bibliography  Save this article

Dynamic evolution process of financial impact path under the multidimensional spatial effect based on G20 financial network

Author

Listed:
  • Zhang, Weiping
  • Zhuang, Xintian
  • Li, Yanshuang

Abstract

This paper describes the features of the multidimensional spatial effects among G20 financial markets and investigates the dynamic evolution process of financial impact in the spatial spillover networks. To achieve this objective, we first define the economic metric and gravitational spatial weight matrix to establish a multidimensional economic space, which is shown to have a significant advantage in capturing the multidimensional spatial effects of financial markets. Then, the spatial econometric complex network autoregressive panel model is constructed by combining the spatial econometrics and complex network theory. Finally, we calculate the Bonacich centrality of nodes in spillover network, and study dynamic process of the financial impact path with different Bonacich nodes being the source of infection. The results show that spatial spillover network includes regional aggregation and dynamic evolution. The spatial spillover effects of financial markets are positively correlated with important financial markets, foreign direct investment, turnover ratio and inflation rate. Emerging financial markets are seen to have increasingly become Bonacich key nodes in the impact path. When the Bonacich key nodes in the spillover network have fluctuations, the impact spreads wider and faster. This study can help us predict the source of the financial turmoil, and remind investors to formulate new asset allocation strategies and risk prevention measures for different financial markets.

Suggested Citation

  • Zhang, Weiping & Zhuang, Xintian & Li, Yanshuang, 2019. "Dynamic evolution process of financial impact path under the multidimensional spatial effect based on G20 financial network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 532(C).
    • Handle: RePEc:eee:phsmap:v:532:y:2019:i:c:s0378437119311057
    DOI: 10.1016/j.physa.2019.121876
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378437119311057
    Download Restriction: Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000
    File URL: https://libkey.io/10.1016/j.physa.2019.121876?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wen, Tiange & Wang, Gang-Jin, 2020. "Volatility connectedness in global foreign exchange markets," Journal of Multinational Financial Management, Elsevier, vol. 54(C).
    2. Fu Qiao & Yan Yan, 2020. "How does stock market reflect the change in economic demand? A study on the industry-specific volatility spillover networks of China's stock market during the outbreak of COVID-19," Papers 2007.07487, arXiv.org.
    3. Shaowei Chen & Long Guo & Weike Zhang, 2023. "Financial Risk Measurement and Spatial Spillover Effects Based on an Imported Financial Risk Network: Evidence from Countries along the Belt and Road," Mathematics, MDPI, vol. 11(6), pages 1-25, March.
    4. Su, Zhi & Xu, Fuwei, 2021. "Dynamic identification of systemically important financial markets in the spread of contagion: A ripple network based collective spillover effect approach," Journal of Multinational Financial Management, Elsevier, vol. 60(C).
    5. Nan, Shijing & Wang, Minna & You, Wanhai & Guo, Yawei, 2023. "Making text count: Identifying systemic risk spillover channels in the Chinese banking sector using annual reports text," Finance Research Letters, Elsevier, vol. 55(PA).
    6. Li, Yanshuang & Zhuang, Xintian & Wang, Jian & Dong, Zibing, 2021. "Analysis of the impact of COVID-19 pandemic on G20 stock markets," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    7. Li, Yanshuang & Zhuang, Xintian & Wang, Jian, 2021. "Analysis of the cross-region risk contagion effect in stock market based on volatility spillover networks: Evidence from China," The North American Journal of Economics and Finance, Elsevier, vol. 56(C).

    Corrections

    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:eee:phsmap:v:532:y:2019:i:c:s0378437119311057. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.