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Economic Geography and Interfirm Transaction Networks

In: The Economics of Interfirm Networks

Author

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  • Kentaro Nakajima

    (Tohoku University)

Abstract

Recent years have seen a remarkable expansion of empirical research using microdata on interfirm transactions that capture disaggregated firm-level transaction relationships. This chapter reviews the background to and recent empirical research on this issue. The chapter starts with a review of studies examining transaction networks without the use of transactions microdata and then shows the limitations of such research. Following this, a definition of transactions microdata and specific examples are provided. Finally, recent empirical research using transactions microdata is reviewed. The review focuses on the following three important questions. How substantial are geographic frictions in the formation of interfirm transaction networks? How great is the impact of networks on the behavior of agents within such networks? And to what extent does a geographically localized shock propagate through such networks? Finally, the future outlook in this line of research is considered.

Suggested Citation

  • Kentaro Nakajima, 2015. "Economic Geography and Interfirm Transaction Networks," Advances in Japanese Business and Economics, in: Tsutomu Watanabe & Iichiro Uesugi & Arito Ono (ed.), The Economics of Interfirm Networks, edition 127, chapter 5, pages 95-106, Springer.
    • Handle: RePEc:spr:advchp:978-4-431-55390-8_5
    DOI: 10.1007/978-4-431-55390-8_5
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    Cited by:

    1. OTAZAWA Toshimori & OHIRA Yuki & Jos VAN OMMEREN, 2018. "Inter-firm Transaction Networks and Location in a City," Discussion papers 18054, Research Institute of Economy, Trade and Industry (RIETI).

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