The double‐edged sword of global integration
Robustness, fragility, and contagion in the international firm network
Bibliographic Data
| ID | 21653243 |
|---|---|
| Authors | Everett Grant (Amazon.com Seattle Washington USA), Julieta Yung (Department of Economics Bates College Lewiston Maine USA, corresponding author) |
| Year | 2021 |
| Volume | 36 |
| Issue | 6 |
| Pages | 760-783 |
| Publication date | 2021-09-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Applied Econometrics (JOURNAL) |
| Journal identifiers | ISSN: 1099-1255 • E-ISSN: 0883-7252 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/jae.2839 |
| OpenAlex | W3182623996 |
| Language | EN |
| Citations received | 2 |
| References cited | 59 |
Increased global integration of firm, production, and financial networks has the potential to benefit growth but also amplify the transmission of crises. We test whether higher global connectedness is associated with robust (beneficial) or fragile (harmful) behavior using networks derived from firm equity returns across all industries (1991–2016). More globally connected firms are less likely to be in distress, with higher profit, revenue, and equity price growth; however, they are more exposed to direct contagion from distressed neighboring firms. Our analysis reveals the centrality of finance, increased globalization, and greater potential for crises to spread globally when they do occur
Business · Centrality · Economics · Financial contagion · Financial crisis · Fragility · Globalization · Macroeconomics · Market economy · Market integration · Microeconomics · Monetary economics · Social connectedness · Transmission channel · Banking stability, regulation, efficiency · Corporate Finance and Governance · Market Dynamics and Volatility
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| Unique citing works | 2 |
|---|---|
| Citations per year | 1 |
| Citation span | 2024 - 2025 (2) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 2 |