Products as Network: An Empirical Approximation of the Manufacturing Production Network in Indonesia

Natanael Waraney Gerald Massie and Carlos Mangunsong

MPRA Paper from University Library of Munich, Germany

Abstract: This study aims to characterise and represent the Indonesian manufacturing sector as a production network. We specifically define any relationship between any two products in the network as a relationship that one product is used as input to produce the other, akin to the input-output models but in a much-disaggregated level of 10-digit product level. This study utilises the Indonesian annual survey of manufacturing firms, specifically the 2017 data, to construct a product-level network of industries. Using the constructed network, this study discusses which products and sectors in the Indonesian manufacturing sector are more well-connected to others, using different centrality measures commonly discussed in network theory. We find that, generally, low-to-medium technology products are the more central products in Indonesian manufacturing. We also compare our framework with other well-established product network frameworks and discuss possible further works using our framework.

Keywords: Product network; manufacturing sector; Indonesia (search for similar items in EconPapers)
JEL-codes: L1 L14 L6 O14 (search for similar items in EconPapers)
Date: 2022-08-05
New Economics Papers: this item is included in nep-hme, nep-net and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:114647

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