Unfolding the hidden structure of the Hungarian multi-layer firm network

Andras Borsos () and Martin Stancsics ()
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Andras Borsos: Magyar Nemzeti Bank (Central Bank of Hungary)

No 2020/139, MNB Occasional Papers from Magyar Nemzeti Bank (Central Bank of Hungary)

Abstract: In this paper we offer an explorative, mainly descriptive analysis about the multi-layered network of Hungarian firms. To conduct this study, we obtained access to firm-level supplier information, on which we could superimpose also the ownership background of all Hungarian companies. Our primary focus was to explore the topological origins of shock propagation phenomena among firms. As both the supplier and the ownership layers are considered to be among the most significant shock-transmitting mediums, our data is ideal to gain insight into previously unobserved structural drivers of spreading processes. We found (i) several topological traits on micro-, meso-, and macro-scale as well, which can be responsible for facilitating contagious processes via supplier links; (ii) we could also identify separated blocks of the economy (representing different production chains) within which shocks can more freely spread in the system; (iii) furthermore, we could assess the significance of economic entities regarding the extent they can influence the economy via their ownership relations.

Keywords: ownership network; producƟon network; supply chain; spillover; shock propagaƟon; contagion (search for similar items in EconPapers)
JEL-codes: C63 C67 C81 G32 L23 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2020
New Economics Papers: this item is included in nep-tra
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:mnb:opaper:2020/139

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