Abstract
Re-globalization is a currently understudied topic and previous research focuses mostly on theoretical discussion of the problem. Empirical re-globalization related research suggests that re-globalization in terms of structural changes in financial network did not start recently, but was already observed after global financial crisis. It might have been further strengthened by pandemic and recent geopolitical tensions, but these tendencies have not been tested empirically. Among possible scenarios of re-globalization, most likely are discussed to be geographical regionalization or ally-based bipolar regionalization. Therefore, we aim to test these scenarios empirically. Using 5-layer multiplex financial network data of 2009–2020 from 234 countries, we found that multiplex financial network appears to be already highly regionalized, but regionalization and globalization appears to be not contradictory processes. Geographical regionalization did not increase in terms of shifting interregional investment to intraregional territory as interregional investment network density and value also increased as well as intraregional. The world appears to have become bipolarly ally-regionalized with 2 main communities - US & Europe vs. China. However, it is worth noting that Europe’s role is still unclear as not all European countries belong to the same identified cluster. Future research could aim to explore in detail what are the main factors affecting ally-familiarity based region formation.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Altman, S.A., Bastian, C.R.: Don’t overestimate shifts from globalization to regionalization. Industrial analytics platform, January 2023 (2023)
Armstrong, R.A.: When to use the Bonferroni correction. Ophthalmic Physiol. Opt. 2014(34), 502–508 (2014). https://doi.org/10.1111/opo.12131
BIS LBS by residence data. Bilateral cross-border claims data (2020). http://www.bis.org/statistics/bankstats.htm. Accessed 21 Sept 2023
Blondel, V.D., Guillaume, J.L., Lambiotte, R., Lefebvre, E.: Fast unfolding of communities in large networks. J. Stat. Mech. Theory Exp. 2008 (2008)
CDIS. CDIS Survey. IMF (2020). https://data.imf.org/?sk=40313609-F037-48C1-84B1-E1F1CE54D6D5. Accessed 05 Aug 2023
CPIS. CPIS Survey. IMF (2020). https://data.imf.org/?sk=B981B4E3-4E58-467E-9B90-9DE0C3367363. Accessed 05 Aug 2023
Del Rio-Chanona, R.M., Korniyenko, Y., Patnam, M., Porter, M.A.: The multiplex nature of global financial contagions. Appl. Network Sci. 5(1), 1–23 (2020)
Gaigaliene, A., Jurakovaite, O., Legenzova, R.: Assessment of EU banking network regionalization during post-crisis period. Oeconomia Copernicana. 9, 655–675 (2018)
Grosskurth, P., Karunska, K., Masabathula, S., Zahidi, S.: Four Futures for Economic Globalization: Scenarios and Their Implications.World Economic Forum, White Paper, May (2022)
Kim, S., Shin, E.H.: A longitudinal analysis of globalization and regionalization in international trade: a social network approach. Soc. Forces 81(2) (2002)
Korniyenko, Y., Patnam, M., Porter, M., Del Rio-Chanona, R.M.: Evolution of the Global Financial Network and Contagion: A New Approach. IMF Working Paper, 18/113 (2018)
Lambert, F., Deb, P., Ehrentraud, J., Gonzįlez-Hermosillo, B.: International banking after the crisis: increasingly local and safer? IMF, April 2015 (2015)
Lund, S., Windhagen, E., Manyika, J., Härle, P., Woetzel, J., Goldshtein, D.: The new dynamics of financial globalization. McKinsey Global Institute (2017)
Martinez-Jaramillo, S., Alexandrova-Kabadjova, B., Bravo-Benitez, B., Solórzano-Margain, J.P.: An empirical study of the Mexican banking system’s network and its implications for systemic risk. J. Econ. Dyn. Control 40, 242–265 (2014)
Minoiu, C., Reyes, J.A.: A Network Analysis of Global Banking: 1978–2009. IMF Working Papers 11(74), 1 (2012)
Paul, T.V.: Globalization, deglobalization and reglobalization: adapting liberal international order. International Affairs 97(5) (2021)
Scott, J., Wilkinson, R.: Reglobalizing trade: progressive global governance in an age of uncertainty. Globalizations 18(1), 55–69 (2021). https://doi.org/10.1080/14747731.2020.1779965
Shein-Chung, C., Jun, S., Hansheng, W.: A note on sample size calculation for mean comparisons based on noncentral T-Statistics. J. Biopharm. Stat. 12(4), 441–456 (2002). https://doi.org/10.1081/BIP-120016229
Talebian, S., Kemp-Benedict, E.: A breakdown in globalization or a world committed to sustainability? Five scenarios for exploring the post-COVID-19 world. LeadIT Brief. 7 (2020)
United Nations world regions classification (2023). Geographic Regions, https://unstats.un.org/unsd/methodology/m49/. Accessed 14 Jul 2023
Wakita, K., Tsurumi, T.: Finding community structure in mega-scale social networks (2007). https://doi.org/10.48550/arXiv.cs/0702048
Wray, J., Jones, O., Rickert McCaffrey, C., Krumbmüller, F.: The future of globalization. Prepare now for a new era. EY-Parthenon, September 2022 (2022)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Jurakovaite, O., Gaigaliene, A. (2024). Multiplex Financial Network Regionalization Scenarios as a Result of Re-globalization: Does Geographical Proximity Still Matter?. In: Cherifi, H., Rocha, L.M., Cherifi, C., Donduran, M. (eds) Complex Networks & Their Applications XII. COMPLEX NETWORKS 2023. Studies in Computational Intelligence, vol 1143. Springer, Cham. https://doi.org/10.1007/978-3-031-53472-0_24
Download citation
DOI: https://doi.org/10.1007/978-3-031-53472-0_24
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-53471-3
Online ISBN: 978-3-031-53472-0
eBook Packages: EngineeringEngineering (R0)