Linkages of Firm Spending Behavior through Supply Chains

Ko Adachi, Kosuke Aoki, Yoshiyuki Kurachi, Taiki Ono and Akitoshi Toyoda
Additional contact information
Ko Adachi: Bank of Japan
Kosuke Aoki: Graduate School of Economics, University of Tokyo
Taiki Ono: Bank of Japan
Akitoshi Toyoda: Bank of Japan

No 26-E-14, Bank of Japan Working Paper Series from Bank of Japan

Abstract: This paper empirically analyzes the linkages of firm spending behavior along supply chains, with a focus on capital investment and wage-setting, using production network data from Japan's manufacturing sector. The analysis yields the following findings. First, there is evidence of bonus linkages within supply chains, originating from temporary foreign demand shocks. Second, more broadly, the capital investment of firms can be influenced by downstream investment activity in supply chains, whether domestically or internationally. In addition, the determination of regular wages within a firm appears to be influenced by the wage rates set by focal firms within the same supply chains. These results underscore the importance of analyzing firm behavior while taking into account the multilayered supply chain structure centered around large manufacturing firms in order to understand Japan's economic dynamics.

Keywords: Supply Chain; Firm-to-Firm Transaction Data; Firm Behavior; Linkages (search for similar items in EconPapers)
JEL-codes: D22 E22 J31 L14 (search for similar items in EconPapers)
Date: 2026-08-12
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.boj.or.jp/en/research/wps_rev/wps_2026/data/wp26e14.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boj:bojwps:wp26e14

Access Statistics for this paper

More papers in Bank of Japan Working Paper Series from Bank of Japan Contact information at EDIRC.
Bibliographic data for series maintained by Bank of Japan ().