Industrial financialization and cross-sectoral risk contagion: A capital flow perspective

Huang Z., Chen S., Su Y., ŞAHİN S.

Finance Research Letters, cilt.86, 2025 (SSCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 86
  • Basım Tarihi: 2025
  • Doi Numarası: 10.1016/j.frl.2025.108644
  • Dergi Adı: Finance Research Letters
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, ABI/INFORM
  • Anahtar Kelimeler: Capital flow, Industrial financialization, Network model, Perturbation method, Risk contagion
  • Yıldız Teknik Üniversitesi Adresli: Evet

Özet

In this paper, we investigate how industrial financialization reshapes cross-sectoral risk contagion from a capital flow perspective. Cross-sectoral risk contagion networks are constructed, and a novel technique, the control perturbation method, is developed to formulate the cross-sectoral risk contagion patterns induced by the financialization of the industrial sector. The empirical analysis reveals that the financialization of the industrial sector systematically amplifies cross-sectoral risk contagion, ultimately inducing ergodic risk propagation dynamics across the economic system.