Uncovering Offshore Financial Centers: Conduits and Sinks in the Global Corporate Ownership Network

Multinational corporations use highly complex structures of parents and subsidiaries to organize their operations and ownership. Offshore Financial Centers (OFCs) facilitate these structures through low taxation and lenient regulation, but are increasingly under scrutiny, for instance for enabling tax avoidance. Therefore, the identification of OFC jurisdictions has become a politicized and contested issue. We introduce a novel data-driven approach for identifying OFCs based on the global corporate ownership network, in which over 98 million firms (nodes) are connected through 71 million ownership relations. This granular firm-level network data uniquely allows identifying both sink-OFCs and conduit-OFCs. Sink-OFCs attract and retain foreign capital while conduit-OFCs are attractive intermediate destinations in the routing of international investments and enable the transfer of capital without taxation. We identify 24 sink-OFCs. In addition, a small set of five countries -- the Netherlands, the United Kingdom, Ireland, Singapore and Switzerland -- canalize the majority of corporate offshore investment as conduit-OFCs. Each conduit jurisdiction is specialized in a geographical area and there is significant specialization based on industrial sectors. Against the idea of OFCs as exotic small islands that cannot be regulated, we show that many sink and conduit-OFCs are highly developed countries

An Alternative Approach to the Calculation and Analysis of Connectivity in the World City Network

Empirical research on world cities often draws on Taylor's (2001) notion of an 'interlocking network model', in which office networks of globalized service firms are assumed to shape the spatialities of urban networks. In spite of its many merits, this approach is limited because the resultant adjacency matrices are not really fit for network-analytic calculations. We therefore propose a fresh analytical approach using a primary linkage algorithm that produces a one-mode directed graph based on Taylor's two-mode city/firm network data. The procedure has the advantage of creating less dense networks when compared to the interlocking network model, while nonetheless retaining the network structure apparent in the initial dataset. We randomize the empirical network with a bootstrapping simulation approach, and compare the simulated parameters of this null-model with our empirical network parameter (i.e. betweenness centrality). We find that our approach produces results that are comparable to those of the standard interlocking network model. However, because our approach is based on an actual graph representation and network analysis, we are able to assess cities' position in the network at large. For instance, we find that cities such as Tokyo, Sydney, Melbourne, Almaty and Karachi hold more strategic and valuable positions than suggested in the interlocking networks as they play a bridging role in connecting cities across regions. In general, we argue that our graph representation allows for further and deeper analysis of the original data, further extending world city network research into a theory-based empirical research approach.Comment: 18 pages, 9 figures, 2 table

A survey on Human Mobility and its applications

Human Mobility has attracted attentions from different fields of studies such as epidemic modeling, traffic engineering, traffic prediction and urban planning. In this survey we review major characteristics of human mobility studies including from trajectory-based studies to studies using graph and network theory. In trajectory-based studies statistical measures such as jump length distribution and radius of gyration are analyzed in order to investigate how people move in their daily life, and if it is possible to model this individual movements and make prediction based on them. Using graph in mobility studies, helps to investigate the dynamic behavior of the system, such as diffusion and flow in the network and makes it easier to estimate how much one part of the network influences another by using metrics like centrality measures. We aim to study population flow in transportation networks using mobility data to derive models and patterns, and to develop new applications in predicting phenomena such as congestion. Human Mobility studies with the new generation of mobility data provided by cellular phone networks, arise new challenges such as data storing, data representation, data analysis and computation complexity. A comparative review of different data types used in current tools and applications of Human Mobility studies leads us to new approaches for dealing with mentioned challenges

Commuting and Panel Spatial Interaction Models: Evidence of Variation of the Distance-Effect over Time and Space

We apply spatial interaction models using panel data to explain commuting behaviour in the Netherlands. Our main conclusion is that the distance-decay effect is not constant over time and that changes in this effect are region specific. In more densely populated regions the change in the distance-decay parameter is small suggesting that regional increases in congestion have a large negative effect on the increases in average commuting distance. The panel spatial interaction model we derive is well-suited for testing significance of the centrality index (an often used variable in spatial interaction models). Although evidence is found for competition effects in a pooled cross section framework, controlling for time invariant unobserved heterogeneity renders this relation spurious.

Complex network analysis and nonlinear dynamics

This chapter aims at reviewing complex network and nonlinear dynamical models and methods that were either developed for or applied to socioeconomic issues, and pertinent to the theme of New Economic Geography. After an introduction to the foundations of the field of complex networks, the present summary introduces some applications of complex networks to economics, finance, epidemic spreading of innovations, and regional trade and developments. The chapter also reviews results involving applications of complex networks to other relevant socioeconomic issue

Dynamical Patterns of Cattle Trade Movements

Despite their importance for the spread of zoonotic diseases, our understanding of the dynamical aspects characterizing the movements of farmed animal populations remains limited as these systems are traditionally studied as static objects and through simplified approximations. By leveraging on the network science approach, here we are able for the first time to fully analyze the longitudinal dataset of Italian cattle movements that reports the mobility of individual animals among farms on a daily basis. The complexity and inter-relations between topology, function and dynamical nature of the system are characterized at different spatial and time resolutions, in order to uncover patterns and vulnerabilities fundamental for the definition of targeted prevention and control measures for zoonotic diseases. Results show how the stationarity of statistical distributions coexists with a strong and non-trivial evolutionary dynamics at the node and link levels, on all timescales. Traditional static views of the displacement network hide important patterns of structural changes affecting nodes' centrality and farms' spreading potential, thus limiting the efficiency of interventions based on partial longitudinal information. By fully taking into account the longitudinal dimension, we propose a novel definition of dynamical motifs that is able to uncover the presence of a temporal arrow describing the evolution of the system and the causality patterns of its displacements, shedding light on mechanisms that may play a crucial role in the definition of preventive actions

Dynamical Patterns of Cattle Trade Movements

Despite their importance for the spread of zoonotic diseases, our understanding of the dynamical aspects characterizing the movements of farmed animal populations remains limited as these systems are traditionally studied as static objects and through simplified approximations. By leveraging on the network science approach, here we are able for the first time to fully analyze the longitudinal dataset of Italian cattle movements that reports the mobility of individual animals among farms on a daily basis. The complexity and inter-relations between topology, function and dynamical nature of the system are characterized at different spatial and time resolutions, in order to uncover patterns and vulnerabilities fundamental for the definition of targeted prevention and control measures for zoonotic diseases. Results show how the stationarity of statistical distributions coexists with a strong and non-trivial evolutionary dynamics at the node and link levels, on all timescales. Traditional static views of the displacement network hide important patterns of structural changes affecting nodes' centrality and farms' spreading potential, thus limiting the efficiency of interventions based on partial longitudinal information. By fully taking into account the longitudinal dimension, we propose a novel definition of dynamical motifs that is able to uncover the presence of a temporal arrow describing the evolution of the system and the causality patterns of its displacements, shedding light on mechanisms that may play a crucial role in the definition of preventive actions