Centrality Measures for Trade and Investment Networks

Abstract

A centrality measure for network defines the significance of a single node. Different centrality measures are used to identify important nodes in different types of networks. There are local centralities measures such as degree centrality, and relative centrality measures such as closeness or betweenness centrality. We used diverse centrality measures to analyse the European Union’s Trade and Eurozone Investment Network. To identify the changes due to global financial crisis we used trade and investment networks of 2007 and 2011, the year’s corresponding to before and after the crisis.

Keywords: Network; Financial Network; Trade Network; Centrality; Influential Nodes; Financial Crisis

Australian Academy of Accounting and Finance Review, vol 1, issue 2, October 2015, page 103-118