Feature Article - FACTBase Bulletin 60 - Perth's Global Connectivity

Published:

The FACTBase research undertaken by academics at UWA and Queensland University analysed Perth’s global connectivity, using the city’s ASX-listed firms and their connections to map a global network, comparing it to other Australian cities. In 2016, Perth was home to 652 ASX-listed headquartered firms, with 77% of these in the materials and energy sectors. Between 2013 and 2016, Perth lost 98 ASX-listed firm headquarters, mostly junior miners, which was more than any other city in Australia,  Melbourne was the only city to gain any.

An investigation to determine the location of branch offices for ASX-listed firms identified that Perth firms had branches in 58 countries while the global reach of Melbourne was 73 countries and Sydney 68. Perth’s links were closely related to its ties in the resources sector, with 49 of the 195 overseas branches in the materials sector and 45 in the energy sector. Key locations connected to Perth were Asia, with 80 branches, the Americas, 42 branches, Europe, 32 branches, Africa, 27 branches and five in Oceania.

Importantly, the research highlighted the importance of understanding in greater detail how cities are connected globally, including complex reporting structures and indirect ties. When examining the network connectivity of 1,840 ASX-listed firms in 2014, it was found that Perth and Sydney scored greater than Melbourne and Brisbane in terms of overall global connectivity.

Understanding connectivity through corporate networks provides insights not only into which economic sectors are most globally connected, but also into which cities and regions of the world make up these networks. The findings of this research are being used to inform the final report being drafted for our Bigger & Better Beyond the Boom project, which will be released in October this year.

Read the Bulletin


Other articles from Insight, July 2018 (view email newsletter):