Network Structure of Japanese Firms. Scale-Free, Hierarchy, and Degree Correlation: Analysis from 800,000 Firms

Abstract:     
We analyze fundamental characteristics of the inter-firm transaction network through the data of 800,000 Japanese firms. We find that there exists a hierarchical structure and a negative degree correlation in this transaction network. We also find that this undirected network is a scale-free network. We bring to light these characteristics of the network and discuss why there is an important need to conduct research work on the actual network structure. --

Number of Pages in PDF File: 14

Keywords: Network of firms, scale-free network, complex network, hierarchy, degree correlation

JEL Classification: L16

Accepted Paper Series