Advances in Complex Systems

We explore the relationship between human migration and OECD’s foreign direct investment (FDI) using a gravity equation enriched with variables that account for complex-network effects. Based on a panel data analysis, we find a strong positive correlation between the migration network and the FDI network, which can be mostly explained by countries’ economic/demographic sizes and geographical distance. We highlight the existence of a stronger positive FDI relationship in pairs of countries that are more central in the migration network. Both intensive and extensive forms of centrality are FDI enhancing. Illuminating this result, we show that bilateral FDI between any two countries is further affected positively by the complex web of ‘third party’ corridors/migration stocks of the international migration network (IMN). Our findings are consistent whether we consider bilateral FDI and bilateral migration figures, or we focus on the outward FDI and the respective inward migration of the OECD countries.

In this paper, a dynamic interbank market network model based on bank agent behaviors is developed to analyze financial contagion with counter-party and liquidity channels. Afterwards, we analyze the impact of dynamics on the stability of interbank market and find that dynamics of interbank market could enhance the resilience of the network, which suggests contagion might be overestimated in current studies. Moreover, we investigate the mechanism of contagion when counter-party and liquidity channels are both active in the dynamic interbank market network. Specifically, we analyze the effects of bank capitalization, interbank exposures, liquid assets, and bank credit lending preference on the stability of the banking system, respectively. First, we find that liquidity in interbank market and fluctuations of deposits could amplify the negative impact of each other on the resilience of interbank market network. Second, banks with higher capitalization level tend to be more resilient against financial contagion. Third, interbank exposures may have multiple effects on the resilience of interbank market network. Fourth, the resilience of interbank market network is a nonmonotonic function of percentage of liquid assets. Finally, we discover a complex relationship between bank credit lending preference and the resilience of interbank market.

In order to alleviate the conflict between the channels in dual-channel supply chain, the altruism tendency and trust input are important for strengthening the cooperation between the channels. We view the dual-channel supply chain as a nonlinear system that consists of co-competition, learning decision and dynamic game between direct channels and retail channels. Then, we develop learning dynamics and evolutionary game model to analyze the channels’ altruism behavior and the factors that influence trust input. We find that the evolutionary direction of altruistic behavior is determined by the sensitiveness and the learning abilities of both members of supply chains. The trust input decision of both channels is highly related to the output ratio of high-level trust input, only if the input–output ratio is ideal for both game parties, the system may come to an evolutionary stable equilibrium of high trust input. If the trust input of the two sides is unilateral, then one side chooses high trust input, while the other side chooses low trust input. In this case, even the input–output ratio is high, it will not be evolutionary stable. The profit both sides earned from the low-trust cooperation is the basic for further trust input, the increased free ride income, trust input risk and the trust evaluation cost will affect the enthusiasm of trust input for the dual-channel supply chain members. To promote high trust input in dual-channel supply chain, a certain amount of compensation should be negotiated in the contract in order to improve the performance of the supply chain.