Functional Network Analysis: A New Way to Compare Frontier and Emerging Markets
Abstract
The study of frontier capital markets provides a unique opportunity to examine the network-based intersection of human behavior and economics. The individual motivations, information availability, transaction systems, and cultural realities in these markets provide a rich context of study. A social network analysis reveals interesting insights about how interrelationships among actors and organizations affect market operations and development. Network analysis provides both a visual and mathematical representation of the relationships and information flows between people, organizations, and functions enabling us to describe capital market structure and function in innovative ways. This study involves developing methodologies to classify capital market networks by comparing the capital markets in three frontier markets (Ghana, Tanzania, and Trinidad and Tobago) to the capital market in an emerging market (the Czech Republic). The analysis highlighted similarities and differences among the markets in order to develop a quantitative capital market classification framework. This research provides insights to economists seeking to understand the interconnections between economic actors and their affects on financial markets and economic conditions.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2012
- Accession Number
- ADA562876
Entities
People
- Daniel Evans
- Margaret Moten
Organizations
- United States Military Academy