A Network Analysis of the Sectoral From-Whom-To-Whom Financial Stock Matrix

Nan Zhang () and Yiye Zhang ()
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Nan Zhang: Hiroshima Shudo University
Yiye Zhang: Cornell University

Chapter Chapter 5 in Global Flow of Funds Analysis, 2024, pp 235-297 from Springer

Abstract: Abstract This study enhances global flow of funds (GFF) statistics for assessing global financial stability at the national and cross-border sectoral levels. The investigation involves scrutinizing data sources and reconstructing the statistical framework to establish the sectoral from-whom-to-whom financial stock matrix (SFSM). The SFSM is constructed using sectoral account data, complemented by international statistics from the Coordinated Portfolio Investment Survey, International Investment Position, and Bank for International Settlements. The SFSM specifically focuses on counterparty national and cross-border exposures of sectors in China, Japan, the United Kingdom, and the United States. It is designed to create country-specific financial networks, interconnecting each country-level network based on cross-border exposures. Analytical results systematically reveal bilateral exposures among the four countries in the GFF, identifying sectoral interlinkages, characteristics of overseas investment, external shocks, and internal influences. Furthermore, this study introduces an eigenvector decomposition to analyze the effects and provided an analytical description of the shock dynamics and propagation process.

Keywords: Data sources; Sectoral accounts; Balance sheet exposures; Cross-border exposures; Shock Dynamics; Financial networks (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-97-1029-4_5

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DOI: 10.1007/978-981-97-1029-4_5

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