How the network properties of shareholders vary with investor type and country

Proper network randomization is key to assessing social balance

Social ties, either positive or negative, lead to signed network patterns, the subject of balance theory. For example, strong balance introduces cycles with even numbers of negative edges. The statistical significance of such patterns is routinely assessed by comparisons to null models. Yet, results in signed networks remain controversial. Here, we show that even if a network exhibits strong balance by construction, current null models can fail to identify it. Our results indicate that matching the signed degree preferences of the nodes is a critical step and so is the preservation of network topology in the null model. As a solution, we propose the STP null model, which integrates both constraints within a maximum entropy framework. STP randomization leads to qualitatively different results, with most social networks consistently demonstrating strong balance in three- and four-node patterns. On the basis our results, we present a potential wiring mechanism behind the observed signed patterns and outline further applications of STP randomization.

Higher-order temporal network effects through triplet evolution

We study the evolution of networks through 'triplets'-three-node graphlets. We develop a method to compute a transition matrix to describe the evolution of triplets in temporal networks. To identify the importance of higher-order interactions in the evolution of networks, we compare both artificial and real-world data to a model based on pairwise interactions only. The significant differences between the computed matrix and the calculated matrix from the fitted parameters demonstrate that non-pairwise interactions exist for various real-world systems in space and time, such as our data sets. Furthermore, this also reveals that different patterns of higher-order interaction are involved in different real-world situations. To test our approach, we then use these transition matrices as the basis of a link prediction algorithm. We investigate our algorithm's performance on four temporal networks, comparing our approach against ten other link prediction methods. Our results show that higher-order interactions in both space and time play a crucial role in the evolution of networks as we find our method, along with two other methods based on non-local interactions, give the best overall performance. The results also confirm the concept that the higher-order interaction patterns, i.e., triplet dynamics, can help us understand and predict the evolution of different real-world systems.

Assessment of Investment Attractiveness in European Countries by Artificial Neural Networks: What Competences are Needed to Make a Decision on Collective Well-Being?

A rich volume of literature has analysed country investment attractiveness in a wide range of contexts. The research has mostly focused on traditional economic concepts—economic, social, managerial, governmental, and geopolitical determinants—with a lack of focus on the smartness approach. Smartness is a social construct, which means that it has no objective presence but is “defined into existence”. It cannot be touched or measured based on uniform criteria but, rather, on the ones that are collectively agreed upon and stem from the nature of definition. Key determinants of smartness learning—intelligence, agility, networking, digital, sustainability, innovativeness and knowledgeability—serve as a platform for the deeper analysis of the research problem. In this article, we assessed country investment attractiveness through the economic subjects’ competences and environment empowering them to attract and maintain investments in the country. The country investment attractiveness was assessed by artificial intelligence (in particular, neural networks), which has found widespread application in the sciences and engineering but has remained rather limited in economics and confined to specific areas like counties’ investment attractiveness. The empirical research relies on the case of assessing investment attractiveness of 29 European countries by the use of 58 indicators and 31,958 observations of annual data of the 2000–2018 time period. The advantages and limitations of the use of artificial intelligence in assessing countries’ investment attractiveness proved the need for soft competences for work with artificial intelligence and decision-making based on the information gathered by such research. The creativity, intelligence, agility, networking, sustainability, social responsibility, innovativeness, digitality, learning, curiosity and being knowledge-driven are the competences that, together, are needed in all stages of economic analysis.