Structure and influence in a global capital–ownership network

Abstract

AbstractRelationships between legal entities can be represented as a large weighted directed graph. In this work, we model the global capital ownership network across a hundred of millions of such entities with the goal of establishing a methodology for extracting and analysing meaningful patterns of capitalistic influence from the graph structure. To do so, we adapt and employ metrics from graph analytics and algorithms from the area of influence maximization. We characterize the relationships extracted and show that our analysis aligns with information from macro-economic studies; for example it recovers the presence of known tax heavens, which appear in dense subgraphs of countries. We also identify and quantify cases where capital is principally owned by others, corresponding to global influence. Beyond confirming known patterns and justifying our novel application of influence maximization methodology in this area, the outcome also offers new insight and metrics in this domain, by highlighting the existence of strong communities of capitalistic property. We leverage influence maximization methods as a means to evaluate the impact of entities in these contexts. Finally we formulate the results of our study into recommendations for future analyses of this kind.