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An Expanded Bipartite Network Projection Algorithm for Measuring Cities’ Connections in Service Firm Networks

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  • Miaoxi Zhao

    (South China University of Technology)

  • Ben Derudder

    (Gent University)

  • Pingcheng Zhang

    (South China University of Technology)

  • Peiqian Zhong

    (University of Pennsylvania)

Abstract

We develop and apply an expanded algorithm for measuring urban connectivity through the lens of the location strategies of producer services firms. Although our algorithm is broadly in the spirit of Taylor’s (Geographical Analysis 33(2):181–194, Taylor 2001) interlocking network model, we contend that it takes on board more of the information contained in the location decisions of producer services firms. Our algorithm for calculating one-mode asymmetric city-dyads is inspired by network analysis research on resource allocation dynamics, which we extend with a weighting method to extract some extra information contained in the two-mode city-by-firm network. To this end, the location strategies of firms, which are co-produced by local governments seeking investments, are regarded as processes of ‘recommendation’. In this process, producer services’ offices are defined as scarce resources to be allocated in the bipartite network. In our analysis, we focus on the location strategies of producer services firms across 106 Chinese cities. Drawing on statistical analysis of the asymmetry in pairs of city-dyads, core cities and peripheral cities are identified. Our results also suggest that provincial capitals tend to link with cities that predominantly house firms with a widely dispersed office network.

Suggested Citation

  • Miaoxi Zhao & Ben Derudder & Pingcheng Zhang & Peiqian Zhong, 2020. "An Expanded Bipartite Network Projection Algorithm for Measuring Cities’ Connections in Service Firm Networks," Networks and Spatial Economics, Springer, vol. 20(2), pages 479-498, June.
    • Handle: RePEc:kap:netspa:v:20:y:2020:i:2:d:10.1007_s11067-019-09486-1
    DOI: 10.1007/s11067-019-09486-1
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    References listed on IDEAS

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    2. Youyi Bi & Yunjian Qiu & Zhenghui Sha & Mingxian Wang & Yan Fu & Noshir Contractor & Wei Chen, 2021. "Modeling Multi-Year Customers’ Considerations and Choices in China’s Auto Market Using Two-Stage Bipartite Network Analysis," Networks and Spatial Economics, Springer, vol. 21(2), pages 365-385, June.

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