Global interdependence and emergence of the new world order managed by transnational networks captures attention of augmenting number of researches. European Union is one the most obvious examples of ongoing processes of transnationalization and could be soundly considered as a network of sovereign states. Economic integration of the EU fosters tightening of economic interdependence of its member states bringing up problems of network vulnerability. Introduction of the common currency – euro – takes economic and financial interdependence to a whole new level. Euro zone crisis of recent years reveals importance of growing financial markets integration in the EU. These conditions bring to light purpose of this paper – to analyse the relationship between the patterns of transnational network ties and modes of economic integration.
It seeks to answer the question of how mode of economic integration influences patterns of transnational network ties. That is – how membership in the euro zone shapes interdependence of the EU financial markets?
Mode of economic integration is defined by its depth and operationalized by stating whether the EU country is a member of the euro zone or not. Transnational network ties represent interdependence of the EU financial markets measured by two indicators – sensitivity (number of liabilities – bonds) and vulnerability (number of alternative investors).
Social network analysis (SNA) of 27 EU member states through the UCINET software is applied to deliver answers.
