Differences in Capital Market Network Structures under COVID-19

Gábor Dávid Kiss; Mercédesz Mészáros; Dóra Sallai

doi:10.2478/auseb-2022-0002

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Differences in Capital Market Network Structures under COVID-19

Acta Universitatis Sapientiae, Economics and Business

Volume 10 (2022): Issue 1 (September 2022)

By: Gábor Dávid Kiss, Mercédesz Mészáros and Dóra Sallai

Open Access

|Oct 2022

Abstract

This paper analyses the structural changes of the underlying stock and currency markets as well as the industrial productions by using a minimum spanning tree graph on a Central and East European sample. The aim is to point out the similarities and differences of the COVID-19 pandemic compared to previous recessions, namely the Dot-com crisis in the early 2000s and the Subprime crisis around 2008. Focusing on the incidence, closeness, and betweenness properties of the graph, we are looking for the emergence of a shock-propagating hub. We identify such a hub during the Subprime crisis but not during the COVID-19 pandemic, which points to the higher efficiency of the economic policy to absorb the worst effects of the crisis.

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Articles in this issue

DOI: https://doi.org/10.2478/auseb-2022-0002 | Journal eISSN: 2360-0047 (formerly 2343-8894)

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Language: English

Page range: 15 - 28

Published online: Oct 13, 2022

Published in print: Sep 1, 2022

Published by: Sapientia Hungarian University of Transylvania

In partnership with: Paradigm Publishing Services

Publication frequency: 1 issue per year

Keywords:

COVID-19,

network,

minimum spanning tree graph,

CEE

JEL:

C31,

C33,

D53,

E58

Related subjects:

Business and economics,

Political economics,

Economic theory, systems and structures

© 2022 Gábor Dávid Kiss, Mercédesz Mészáros, Dóra Sallai, published by Sapientia Hungarian University of Transylvania
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Volume 10 (2022): Issue 1 (September 2022)