IDEAS home Printed from https://ideas.repec.org/p/boj/bojwps/wp26e13.html

Mapping Japan's Manufacturing Supply Chains Through Firm-to-Firm Transaction Data

Author

Listed:
  • Ko Adachi

    (Bank of Japan)

  • Kosuke Aoki

    (Graduate School of Economics, University of Tokyo)

  • Yoshiyuki Kurachi

    (Bank of Japan)

  • Taiki Ono

    (Bank of Japan)

  • Akitoshi Toyoda

    (Bank of Japan)

Abstract

This study employs firm-to-firm transaction data to identify the multilayered and extensive supply chain structures in Japan's manufacturing sector and quantitatively analyze the characteristics of these supply chain structures. It also investigates the impacts of firm-level shocks, arising from both the supply and demand sides, on the overall manufacturing sector. The analysis reveals that automobile supply chains are exceptionally long and large-scale, with firms at the center of these chains exerting a larger influence on individual suppliers' production activities than in other industries. Furthermore, the findings indicate that supply constraints in products identified as potential bottlenecks can significantly dampen macroeconomic production. The results also highlight that holding inventory can serve as an effective measure to mitigate these impacts to a certain extent.

Suggested Citation

  • Ko Adachi & Kosuke Aoki & Yoshiyuki Kurachi & Taiki Ono & Akitoshi Toyoda, 2026. "Mapping Japan's Manufacturing Supply Chains Through Firm-to-Firm Transaction Data," Bank of Japan Working Paper Series 26-E-13, Bank of Japan.
    • Handle: RePEc:boj:bojwps:wp26e13
    as

    Download full text from publisher

    File URL: https://www.boj.or.jp/en/research/wps_rev/wps_2026/data/wp26e13.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pol Antras & Davin Chor & Thibault Fally & Russell Hillberry, 2012. "Measuring the Upstreamness of Production and Trade Flows," American Economic Review, American Economic Association, vol. 102(3), pages 412-416, May.
    2. Hiroyasu Inoue & Yasuyuki Todo, 2019. "Firm-level propagation of shocks through supply-chain networks," Nature Sustainability, Nature, vol. 2(9), pages 841-847, September.
    3. Vasco M Carvalho & Makoto Nirei & Yukiko U Saito & Alireza Tahbaz-Salehi, 2021. "Supply Chain Disruptions: Evidence from the Great East Japan Earthquake," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(2), pages 1255-1321.
    4. Daron Acemoglu & Vasco M. Carvalho & Asuman Ozdaglar & Alireza Tahbaz‐Salehi, 2012. "The Network Origins of Aggregate Fluctuations," Econometrica, Econometric Society, vol. 80(5), pages 1977-2016, September.
    5. Yuya Katafuchi & Xinmeng Li & Daniel Moran & Taiki Yamada & Hidemichi Fujii & Keiichiro Kanemoto, 2025. "Construction of an enterprise-level global supply chain database," Nature Communications, Nature, vol. 16(1), pages 1-10, December.
    6. Andrew B. Bernard & Andreas Moxnes & Yukiko U. Saito, 2019. "Production Networks, Geography, and Firm Performance," Journal of Political Economy, University of Chicago Press, vol. 127(2), pages 639-688.
    7. Jean-Noël Barrot & Julien Sauvagnat, 2016. "Input Specificity and the Propagation of Idiosyncratic Shocks in Production Networks," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(3), pages 1543-1592.
    8. Inomata,Satoshi & Hisamitsu,Toru & Imamura,Fumihiko & Kichikawa,Yuichi & Sagara,Yoshiyuki, 2026. "Where is the chokepoint? Mapping supply chain vulnerabilities using firmto-firm transaction data," IDE Discussion Papers 1004, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    9. David Simchi-Levi & William Schmidt & Yehua Wei & Peter Yun Zhang & Keith Combs & Yao Ge & Oleg Gusikhin & Michael Sanders & Don Zhang, 2015. "Identifying Risks and Mitigating Disruptions in the Automotive Supply Chain," Interfaces, INFORMS, vol. 45(5), pages 375-390, October.
    10. Saito, Yukiko Umeno & Watanabe, Tsutomu & Iwamura, Mitsuru, 2007. "Do larger firms have more interfirm relationships?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 383(1), pages 158-163.
    11. Christoph E. Boehm & Aaron Flaaen & Nitya Pandalai-Nayar, 2019. "Input Linkages and the Transmission of Shocks: Firm-Level Evidence from the 2011 Tōhoku Earthquake," The Review of Economics and Statistics, MIT Press, vol. 101(1), pages 60-75, March.
    12. Emmanuel Dhyne & Ayumu Ken Kikkawa & Toshiaki Komatsu & Magne Mogstad & Felix Tintelnot, 2025. "Firm Responses and Wage Effects of Foreign Demand Shocks with Fixed Labor Costs and Monopsony," American Economic Review, American Economic Association, vol. 115(12), pages 4328-4368, December.
    13. Ronald E. Miller & Umed Temurshoev, 2017. "Output Upstreamness and Input Downstreamness of Industries/Countries in World Production," International Regional Science Review, , vol. 40(5), pages 443-475, September.
    14. David Rezza Baqaee & Emmanuel Farhi, 2019. "The Macroeconomic Impact of Microeconomic Shocks: Beyond Hulten's Theorem," Econometrica, Econometric Society, vol. 87(4), pages 1155-1203, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emmanuel Dhyne & Ayumu Ken Kikkawa & Glenn Magerman, 2022. "Imperfect Competition in Firm-to-Firm Trade," Journal of the European Economic Association, European Economic Association, vol. 20(5), pages 1933-1970.
    2. Elliott, M. & Jackson, M. O., 2024. "Supply Chain Disruptions, the Structure of Production Networks, and the Impact of Globalization," Cambridge Working Papers in Economics 2424, Faculty of Economics, University of Cambridge.
    3. Pellet, Thomas & Tahbaz-Salehi, Alireza, 2023. "Rigid production networks," Journal of Monetary Economics, Elsevier, vol. 137(C), pages 86-102.
    4. Thiago Christiano Silva & Paulo Victor Berri Wilhelm & Solange Maria Guerra, 2025. "Weathering the Storm: how supply chains adapt to extreme climate events," Working Papers Series 613, Central Bank of Brazil, Research Department.
    5. Vasily Korovkin & Alexey Makarin, 2020. "Production Networks and War," Papers 2011.14756, arXiv.org, revised Aug 2022.
    6. Zhang, Yuqi & Li, Huajiao & Sun, Xiaoqi & Tang, Qianyong & Ren, Bo & Shi, Jianglan, 2025. "Network spillover effects and path analysis of shocks - An empirical study in China," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 275-285.
    7. Matteo Coronese & Davide Luzzati, 2022. "Economic impacts of natural hazards and complexity science: a critical review," LEM Papers Series 2022/13, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    8. Silva, Alvaro & Caraiani, Petre & Miranda-Pinto, Jorge & Olaya-Agudelo, Juan, 2024. "Commodity prices and production networks in small open economies," Journal of Economic Dynamics and Control, Elsevier, vol. 168(C).
    9. Bahal, Girish & Lenzo, Damian, 2023. "Industries on the edge: The most exposed sectors to microeconomic shocks," Economics Letters, Elsevier, vol. 232(C).
    10. Everett Grant & Julieta Yung, 2019. "Upstream, Downstream & Common Firm Shocks," Globalization Institute Working Papers 360, Federal Reserve Bank of Dallas.
    11. Yuzuka Kashiwagi & Yasuyuki Todo & Petr Matous, 2021. "Propagation of economic shocks through global supply chains—Evidence from Hurricane Sandy," Review of International Economics, Wiley Blackwell, vol. 29(5), pages 1186-1220, November.
    12. Bacilieri, Andrea & Borsos, András & Astudillo-Estévez, Pablo & Hoefer, Mads & Lafond, François, 2026. "Firm-level production networks: What do we (really) know?," Journal of Economic Dynamics and Control, Elsevier, vol. 187(C).
    13. Huang, Hanwei & Manova, Kalina & Perello, Oscar & Pisch, Frank, 2024. "Firm heterogeneity and imperfect competition in global production networks," LSE Research Online Documents on Economics 126808, London School of Economics and Political Science, LSE Library.
    14. repec:ces:ceswps:_11302 is not listed on IDEAS
    15. Alonso de Gortari, 2018. "Disentangling Global Value Chains," 2018 Meeting Papers 139, Society for Economic Dynamics.
    16. David Rezza Baqaee, 2018. "Cascading Failures in Production Networks," Econometrica, Econometric Society, vol. 86(5), pages 1819-1838, September.
    17. Florio, Anna & Siena, Daniele & Zago, Riccardo, 2025. "Global value chains and the Phillips curve: A challenge for monetary policy," European Economic Review, Elsevier, vol. 174(C).
    18. Kramarz, Francis & Martin, Julien & Mejean, Isabelle, 2020. "Volatility in the small and in the large: The lack of diversification in international trade," Journal of International Economics, Elsevier, vol. 122(C).
    19. Basile Grassi & Julien Sauvagnat, 2019. "Production networks and economic policy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 35(4), pages 638-677.
    20. Das, Sonali & Magistretti, Giacomo & Pugacheva, Evgenia & Wingender, Philippe, 2022. "Sectoral spillovers across space and time," Journal of Macroeconomics, Elsevier, vol. 72(C).
    21. Emmanuel Dhyne & Ayumu Ken Kikkawa & Magne Mogstad & Felix Tintelnot, 2021. "Trade and Domestic Production Networks," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(2), pages 643-668.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:boj:bojwps:wp26e13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bank of Japan (email available below). General contact details of provider: https://edirc.repec.org/data/bojgvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.