Daisuke Fujii, 13 November 2016

Buyer-supplier networks in production processes play an important role in determining the pattern of shock propagations and aggregate fluctuations. This column provides empirical evidence on the structure of production networks and buyer-supplier sales comovements. A strong interdependence of sales growth is confirmed. In general, firms are more affected by their customers than suppliers.  Manufacturing and wholesale sectors exhibit higher propagation factors while retail and service sectors exhibit lower propagation factors. 

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