EVOLUTIONARY TOPOLOGY OF A CURRENCY NETWORK IN ASIA

Xiaobing Feng () and Xiaofan Wang ()
Additional contact information
Xiaobing Feng: College of Finance, Shanghai Institute of Foreign Trade, Shanghai 200240, China;
Xiaofan Wang: Complex Networks and Control Lab, Department of Automations, Shanghai Jiaotong University, 200240, China

International Journal of Modern Physics C (IJMPC), 2010, vol. 21, issue 04, 471-480

Abstract: Although recently there are extensive research on currency network using minimum spanning trees approach, the knowledge about the actual evolution of a currency web in Asia is still limited. In the paper, we study the structural evolution of an Asian network using daily exchange rate data. It was found that the correlation between Asian currencies and US Dollar, the previous regional key currency has become weaker and the intra-Asia interactions have increased. This becomes more salient after the exchange rate reform of China. Different from the previous studies, we further reveal that it is the trade volume, national wealth gap and countries growth cycle that has contributed to the evolutionary topology of the minimum spanning tree. These findings provide a valuable platform for theoretical modeling and further analysis.

Keywords: Minimum spanning tree; dendrogram; Asian currency clusters; China exchange rate reform; 89.65.-s; 89.75.Hc; 87.23.Ge (search for similar items in EconPapers)
Date: 2010
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0129183110015269
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijmpcx:v:21:y:2010:i:04:n:s0129183110015269

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0129183110015269

Access Statistics for this article

International Journal of Modern Physics C (IJMPC) is currently edited by H. J. Herrmann

More articles in International Journal of Modern Physics C (IJMPC) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().