Financial contagion dynamics and fragility assessment of industrial complex network

Financial contagion dynamics and fragility assessment of industrial complex network

Bao Wu

1China Institute for Small and Medium Enterprises, Zhejiang University of Technology, Chaowang Rd. 18, Hangzhou, Zhejiang, P.R. China

2Zhejiang Economic &Trade Polytechnic, Xueling st.108, Hangzhou, Zhejiang, P.R. China

The paper proposed a mathematical modelling of financial contagion dynamics that is tightly linked to systematic risk of industrial complex network. And the paper provides a practical method to assess fragility of industrial complex network in the context of financial contagion. To examine its function, an experimental analysis based on real data set of a Chinese textile industrial network is conducted. The experimental analysis shows that the method proposed in the paper is effective ad reliable, and is capable to assess fragility of industrial complex network in the context of financial contagion.