Characterization of the Community Structure in a Large-Scale Production Network in Japan

Physica A 513, 210–221 (2019), DOI: 10.1016/j.physa.2018.08.175

12 Pages Posted: 2 Jun 2017 Last revised: 8 Oct 2018

See all articles by Abhijit Chakraborty

Abhijit Chakraborty

University of Hyogo - Graduate School of Simulation Studies; International Institute for Applied Systems Analysis (IIASA) - Advanced Systems Analysis; Complexity Science Hub Vienna

Hazem Krichene

Potsdam Institute for Climate Impact Research

Hiroyasu Inoue

University of Hyogo - Graduate School of Simulation Studies

Yoshi Fujiwara

University of Hyogo - Graduate School of Simulation Studies

Date Written: June 1, 2017

Abstract

Inter-firm organizations, which play a driving role in the economy of a country, can be represented in the form of a customer-supplier network. Such a network exhibits a scale-free degree distribution, disassortative mixing and a prominent community structure. We analyze a large-scale data set of customer-supplier relationships containing data from one million Japanese firms. Using a directed network framework, we show that the production network exhibits the characteristics listed above. We conduct detailed investigations to characterize the communities in the network. The topology within smaller communities is found to be very close to a tree-like structure but becomes denser as the community size increases. A large fraction (∼ 40%) of firms with relatively small in- or out-degrees have customers or suppliers solely from within their own communities, indicating interactions with a highly local nature. The interaction strengths between communities as measured by the inter-community link weights exhibit a highly heterogeneous distribution. We further present the statistically significant over-expressions of different prefectures and sectors within different communities.

Keywords: Community Structure, Production Network, Large-Scale Data, Hierarchical Map Equation, Heterogeneous Distribution, Over-Expressions of Prefectures and Sectors

JEL Classification: C55, C00

Suggested Citation

Chakraborty, Abhijit and Krichene, Hazem and Inoue, Hiroyasu and Fujiwara, Yoshi, Characterization of the Community Structure in a Large-Scale Production Network in Japan (June 1, 2017). Physica A 513, 210–221 (2019), DOI: 10.1016/j.physa.2018.08.175 , Available at SSRN: https://ssrn.com/abstract=2978505 or http://dx.doi.org/10.2139/ssrn.2978505

Abhijit Chakraborty (Contact Author)

University of Hyogo - Graduate School of Simulation Studies ( email )

7-1-28 Minato-jima, Minami-machi
Chuo-ku
Kobe, Hyogo 650-0047
Japan

International Institute for Applied Systems Analysis (IIASA) - Advanced Systems Analysis ( email )

Schlossplatz 1, A-2361 Laxenburg, Austria

Complexity Science Hub Vienna ( email )

Josefstädter Straße 39
Vienna
Austria

Hazem Krichene

Potsdam Institute for Climate Impact Research ( email )

Telegraphenberg A56
Sonne-Wing
Potsdam, Branderburg 14412
Germany

Hiroyasu Inoue

University of Hyogo - Graduate School of Simulation Studies ( email )

7-1-28 Minato-jima, Minami-machi
Chuo-ku
Kobe, Hyogo 650-0047
Japan

Yoshi Fujiwara

University of Hyogo - Graduate School of Simulation Studies ( email )

7-1-28 Minato-jima, Minami-machi
Chuo-ku
Kobe, Hyogo 650-0047
Japan

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