In this study, we provide a detailed global topological analysis on the Chinese guarantee network and highlight the effect of financial crisis and monetary policies on the evolution of network topologies. On the one hand, the static and dynamic analyses on network indicators confirm a number of stylized facts that are verified for other real complex systems. Guarantee networks are highly sparse, incomplete, and exhibit a small world property and a power-law degree distribution. On the other hand, we present data-driven insights on the association of the topological structure of guarantee networks with economic shock (the 2008 global financial crisis ) and monetary policies (i.e., Chinese economic stimulus program and loose monetary policies and latter adjustment). Specifically, the empirical and exponential random graph model results provided that (a) the guarantee network became small due to the huge number of bankruptcies of small and medium firms during financial crisis, and (b) the loose monetary policy along with the stimulus programincreased the mutual guarantee behavior among firms that resulted in a highly reciprocal and interconnected network. The following adjustment of monetary policies reduced the interconnection of the network .
Examining the topological properties of networks formed by such guarantee relationships is critical for an in-depth understanding and effective regulations of the financial system. In this research, we analyzed the structure and evolution of the Chinese guarantee network with real-world data from 2007 to 2012. We identified the scale-free and power-law properties of the guarantee network and found the global financial crisis and follow-up economic stimulus program had a significant influence on the evolution of the guarantee network. In particular, both the growth and connectivity of the guarantee network was diminished by the 2008 financial crisis, and enhanced by the following stimulus program. This research presents data-driven insights on how the topological structure of the guarantee network is associated with economic policies .
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In this study, we provide a detailed global topological analysis on the Chinese guarantee network and highlight the effect of financial crisis and monetary policies on the evolution of network topologies. On the one hand,
Examining the topological properties of networks formed by such guarantee relationships is critical for an in-depth understanding and effective regulations of
R
static and dynamic analyses on network indicators confirm a number of stylized facts that are verified for other real complex systems. Guarantee networks are highly sparse, incomplete, and exhibit a small world property and a
financial system. In this research, we analyzed the structure and evolution of the Chinese guarantee network with real-world data from 2007 to 2012. We identified the scale-free and
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degree distribution. On the other hand, we present data-driven insights on the association of the topological structure of guarantee networks with economic shock (the 2008
properties of the guarantee network and found the
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) and monetary policies (i.e., Chinese
and follow-up
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and loose monetary policies and latter adjustment). Specifically,
had a significant influence on the evolution of the guarantee network. In particular, both the growth and connectivity of
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empirical and exponential random graph model results provided that (a) the
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became small due to the huge number of bankruptcies of small and medium firms during
was diminished by the 2008
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(b) the loose monetary policy along with the stimulus programincreased the mutual guarantee behavior among firms that resulted in a highly reciprocal and interconnected network. The following adjustment of monetary policies reduced the interconnection of the network
enhanced by the following stimulus program. This research presents data-driven insights on how the topological structure of the guarantee network is associated with economic policies