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Industry Productivity Growth: A Network Perspective

Author

Listed:
  • Teng Joe

    (Troy University, United States)

  • Wu Dazhong

    (Troy University, United States)

  • Smith Fran

    (Troy University, United States)

Abstract

Background: This study investigates the determinants of industrial productivity growth from a network perspective.Objectives: The research focuses on the influence on a focal industry’s productivity growth by its partner industries’ productivity growth, and the impact of the focal industry’s position in the supply chain network.Method/Approach: The paper models the economy as a customer-supplier industry network and empirically investigates how a focal industry’s multifactor productivity is influenced by the productivities of industries that are connected to it, and how this influence is moderated by its position in the network.Results: Based on a balanced panel dataset of 55 industries from the United States Bureau of Economic Analysis (BEA) input-output accounts, the results indicate that a focal industry’s productivity growth is positively associated with its partner industries’ productivity growth, and that industries with higher centrality in the network tend to have higher productivity growth.Conclusions: The study concludes with a discussion on the implications of the findings and the contribution to the productivity literature. Several directions for further research were identified.

Suggested Citation

  • Teng Joe & Wu Dazhong & Smith Fran, 2015. "Industry Productivity Growth: A Network Perspective," Business Systems Research, Sciendo, vol. 6(2), pages 41-51, September.
    • Handle: RePEc:bit:bsrysr:v:6:y:2015:i:2:p:41-51
    DOI: 10.1515/bsrj-2015-0010
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    industry network; multi-productivity; network centrality; network perspective; customer-supplier industry network;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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