EconPapers    
Economics at your fingertips  
 

Production Networks, Geography and Firm Performance

Yukiko Saito (), Andreas Moxnes and Andrew Bernard ()

No 311, 2015 Meeting Papers from Society for Economic Dynamics

Abstract: This paper examines the importance of buyer-supplier relationships, geography and the structure of the production network in firm performance. We develop a simple model where firms can outsource tasks and search for suppliers in different locations. Firms located in close proximity to other markets, and firms that face low search costs, will search more and find better suppliers. This in turn drives down the firm's marginal production costs. We test the theory by exploiting the opening of a high-speed (Shinkansen) train line in Japan which lowered the cost of passenger travel but left shipping costs unchanged. Using an exhaustive dataset on firms' buyer-seller linkages, we find significant improvements in firm performance as well as creation of new buyer-seller links, consistent with the model.

New Economics Papers: this item is included in nep-bec, nep-com, nep-cse, nep-geo, nep-net, nep-sbm and nep-ure
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed

Downloads: (external link)
https://economicdynamics.org/meetpapers/2015/paper_311.pdf (application/pdf)

Related works:
Journal Article: Production Networks, Geography, and Firm Performance (2019) Downloads
Working Paper: Production Networks, Geography and Firm Performance (2016) Downloads
Working Paper: Production networks, geography and firm performance (2016) Downloads
Working Paper: Production Networks, Geography, and Firm Performance (2016) Downloads
Working Paper: Production Networks, Geography and Firm Performance (2015) Downloads
Working Paper: Production Networks, Geography and Firm Performance (2015) Downloads
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:red:sed015:311

Access Statistics for this paper

More papers in 2015 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2019-10-15
Handle: RePEc:red:sed015:311