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Transaction data for evidence-based industrial policy

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  • OECD

Abstract

The recent revival of industrial policy has generated a renewed demand to evaluate their impacts. Firm-to-firm transaction data offer new possibilities to evaluate industrial policies in general, and policy spillovers in particular. This paper reviews the current state of policy analysis using firm-to-firm transaction data. It argues that value-added tax (VAT) data are the preferred option for studying policy spillovers across a range of policies. The paper then lists gaps in the literature which the OECD could address in future research. The paper shows how transaction data allow one to causally identify the spillovers from industrial policies, or any policy with expected positive spillovers between connected firms. The paper then turns to the emerging evidence on supply chain resilience and discusses how transaction data is best placed to evaluate policies to attenuate these negative spillovers. Finally, the paper shows how transaction data may complement the literature on pro-productivity policies.

Suggested Citation

  • Oecd, 2025. "Transaction data for evidence-based industrial policy," OECD Science, Technology and Industry Policy Papers 178, OECD Publishing.
    • Handle: RePEc:oec:stiaac:178-en
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    More about this item

    Keywords

    Industrial Policy; Networks; Productivity; Supply Chains; VAT Data;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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