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Roles of Wholesalers in Transaction Networks

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  • OKUBO Toshihiro
  • ONO Yukako
  • SAITO Yukiko

Abstract

Wholesalers are considered to play an important role in ensuring efficient transaction networks. Using unique data on Japanese domestic transactions compiled by Tokyo Shoko Research, we investigate wholesalers' roles in transaction networks for intermediate manufacturing goods. Comparing manufacturing firms transacting directly and those connected indirectly through wholesalers, we find a clear asymmetry in the characteristics of buyer- and seller-side manufacturers that tend to rely on wholesalers. We also examine how transaction distances differ depending on transaction partners, and find that, as compared to manufacturing partners in direct transactions, wholesalers tend to locate closer to their manufacturing buyers and farther from their manufacturing sellers, ceteris paribus. This gives us insights on how wholesalers support transaction networks that connect geographically dispersed manufacturing firms.

Suggested Citation

  • OKUBO Toshihiro & ONO Yukako & SAITO Yukiko, 2014. "Roles of Wholesalers in Transaction Networks," Discussion papers 14059, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:14059
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    Cited by:

    1. Tadashi Ito & Yukiko Umeno Saito, 2021. "Indirect trade and direct trade: Evidence from Japanese firm transaction data," The World Economy, Wiley Blackwell, vol. 44(2), pages 444-461, February.

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