Industry Productivity Growth: A Network Perspective

Teng Joe (), Wu Dazhong () and Smith Fran ()
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Teng Joe: Troy University, United States
Wu Dazhong: Troy University, United States
Smith Fran: Troy University, United States

Business Systems Research, 2015, vol. 6, issue 2, 41-51

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.

Keywords: industry network; multi-productivity; network centrality; network perspective; customer-supplier industry network (search for similar items in EconPapers)
JEL-codes: M21 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:bit:bsrysr:v:6:y:2015:i:2:p:41-51

DOI: 10.1515/bsrj-2015-0010

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