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Cited by 198

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Production Networks, Geography, and Firm Performance

Open access
Bernard, Andrew B., Moxnes, Andreas, Saito, Yukiko U.·2019·Journal of Political Economy

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.Low search and outsourcing costs lead firms to 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.

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Metadata

Authors
Bernard, A. B., Moxnes, A., & Saito, Y. U.
Venue
Journal of Political Economy
Published
2019-04
Volume
127
Issue
2
Pages
639-688
ISSN
  • 0022-3808 (ISSN-L)
  • 1537-534X
OpenAlex
W1605533373
Cited by
198
References
1
FWCI
41.17
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Production Networks, Geography, and Firm Performance. https://app.cochat.ai/papers/10.1086/700764
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Bernard, A. B., Moxnes, A., & Saito, Y. U. (2019). Production Networks, Geography, and Firm Performance. Journal of Political Economy. https://doi.org/10.1086/700764

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.