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2015 | OriginalPaper | Buchkapitel

1. The Economics of Interfirm Networks: Main Issues

verfasst von : Tsutomu Watanabe, Iichiro Uesugi, Arito Ono

Erschienen in: The Economics of Interfirm Networks

Verlag: Springer Japan

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Excerpt

Interfirm networks prevail in many facets of economic activity and are significantly influential across a range of economic phenomena from business cycles to knowledge spillovers. There is a growing concern in the policy arena relating to the vulnerability of such networks based on the casual observation that idiosyncratic shocks on firms can be amplified through interfirm connections and can lead to a systemic crisis. Typical examples are the manufacturing supply-chain networks in the automobile and electronics industries that propagated regionally concentrated shocks—such as the Great East Japan Earthquake and the floods in Thailand, both in 2011—into global ones. The recent global financial crisis has also shown that the failure of a large bank can have significant adverse effects on the economy as a whole via complex transaction networks. …

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Fußnoten
1
To date, the applications of network theory on finance mainly focus on issues related to the contagion among financial institutions, typically through interbank markets (Allen and Babus 2008). An exception to this is Ogura et al. (2014), which is a product of this research project.
 
2
Using the same dataset, Uchida et al. (2015) provide a comprehensive overview of interfirm relationships in Japan, with emphasis on the use of trade credit.
 
3
Employing the dataset of real properties collateral in Chap. 10, Ono et al. (2014) examine the evolution of loan-to-value (LTV) ratios during the bubble and post-bubble periods in Japan, and the ex-post performance of borrowers that obtained high LTV loans.
 
4
Todo, Nakajima, and Matous (2015) evidence that the firms that have trading partners located outside the earthquake-affected area resumed their operations earlier.
 
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Metadaten
Titel
The Economics of Interfirm Networks: Main Issues
verfasst von
Tsutomu Watanabe
Iichiro Uesugi
Arito Ono
Copyright-Jahr
2015
Verlag
Springer Japan
DOI
https://doi.org/10.1007/978-4-431-55390-8_1

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