| Author Name | CHEN Cheng (Clemson University) / SUN Chang (University of Hong Kong) / ZHANG Hongyong (Senior Fellow, RIETI) / ZHANG Jiaxu (University of Hong Kong) |
|---|---|
| Creation Date/NO. | June 2023 23-E-039 |
| Research Project | Empirical Studies on Crises and Issues in Global Supply Chains |
| Download / Links | |
| Notes |
First draft: June 2023 |
Abstract
Using data on both buyer-supplier and owner-subsidiary links between Japanese firms, we characterize the interconnection between production and ownership networks. In the cross- section, we find that the majority of the owner-subsidiary links are also buyer-supplier links, highlighting the role of goods or services transactions in vertical relationships. In addition, we find that firms are more likely to use buyers/suppliers that are already adopted by related parties, suggesting an indirect benefit of integration.
