Does Finance Industry Lead Real Economic Activities? Analysis of Industry Networks

Yong-Cheol Kim, Gabjin Oh


The analysis of network of 30 US industries shows the leading role of finance industry. Following are major findings and observations: 1) we show that leading industry in economy changes over time as the U.S. industry structure changes over time. Finance industry plays a leading role of net information source over the sample period of 1930-2014, and the importance of finance industry starts to dominate from 1975. 2) Even when finance industry is not ranked as the strongest source of information, the finance industry dominates in the industry network when the net information flows are adjusted by the value added of finance in the GDP. 3) Differences of strength of directed connectedness (ASDC) of source and sink industries signal potential disturbance in the network of industries.

Full Text:




  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

International Research in Economics and Finance  ISSN 2529-8038 (Print)  ISSN 2591-734X (Online)

Copyright © July Press

To make sure that you can receive messages from us, please add the '' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.