D. Matesanz thanks financial support from the Spanish Ministry of Education through the ‘José Castillejo’ Programme (JC2010-0273). G. Ortega thanks financial support from CONICET PIP (PIP 11420100100261) and Universidad Nacional de Quilmes PUNQ 1000/11.
Article first published online: 25 JUL 2013
© 2013 John Wiley & Sons Ltd
The World Economy
Volume 36, Issue 12, pages 1632–1648, December 2013
How to Cite
Gomez, D. M., Torgler, B. and Ortega, G. J. (2013), Measuring Global Economic Interdependence: A Hierarchical Network Approach. World Economy, 36: 1632–1648. doi: 10.1111/twec.12080
- Issue published online: 18 DEC 2013
- Article first published online: 25 JUL 2013
- Spanish Ministry of Education. Grant Number: JC2010-0273
- CONICET PIP. Grant Number: PIP 11420100100261
- Universidad Nacional de Quilmes PUNQ. Grant Number: 1000/11
This paper investigates the business cycle co-movement across countries and regions since 1950 as a measure for quantifying the economic interdependence in the ongoing globalisation process. Our methodological approach is based on analysis of a correlation matrix and the networks it contains. Such an approach summarises the interaction and interdependence of all elements, and it represents a more accurate measure of the global interdependence involved in an economic system. Our results show (1) the dynamics of interdependence has been driven more by synchronisation in regional growth patterns than by the synchronisation of the world economy, and (2) world crisis periods dramatically increase the global co-movement in the world economy.