Hierarchical Communities in the Walnut Structure of the Japanese Production Network

PLoS ONE 13(8), 2018, DOI: 10.1371/journal.pone.0202739

38 Pages Posted: 1 Mar 2018 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

Yuichi Kichikawa

Niigata University

Takashi Iino

Niigata University

Hiroshi Iyetomi

Niigata University

Hiroyasu Inoue

University of Hyogo - Graduate School of Simulation Studies

Yoshi Fujiwara

University of Hyogo - Graduate School of Simulation Studies

Hideaki Aoyama

RIKEN iTHEMS; Research Institute for Economy, Industry and Trade (RIETI)

Date Written: February 26, 2018

Abstract

The structure of Japanese production network with one million firms and five million supplier-customer links is studied. It is found that they form a tightly-knit structure with a core giant strongly connected component (GSCC) surrounded by IN and OUT components constituting two half-shells after the GSCC, which we name 'Walnut structure' after its shape. The hierarchical structure of communities is studied by Infomap method and most of the irreducible communities are found to be on the second level. Composition of some of the major communities, including overexpressions of industrial and regional nature, as well as connections between the communities, is studied in detail. The findings obtained here cast doubt on the validity and accuracy of the conventional input-output analysis, which is expected to be useful if firms in the same sectors would be well connected with each other.

Keywords: Production network, Giant strongly connected component, Walnut structure, Hierarchical structure of communities, Overexpressions, Input-output analysis

JEL Classification: C55, D85, C00

Suggested Citation

Chakraborty, Abhijit and Kichikawa, Yuichi and Iino, Takashi and Iyetomi, Hiroshi and Inoue, Hiroyasu and Fujiwara, Yoshi and Aoyama, Hideaki, Hierarchical Communities in the Walnut Structure of the Japanese Production Network (February 26, 2018). PLoS ONE 13(8), 2018, DOI: 10.1371/journal.pone.0202739, Available at SSRN: https://ssrn.com/abstract=3129974 or http://dx.doi.org/10.2139/ssrn.3129974

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

Yuichi Kichikawa

Niigata University ( email )

8050 Ikarashi 2 Nocho Nishi Ward
Niigata Prefecture
Niigata, 950-218
Japan

Takashi Iino

Niigata University ( email )

8050 Ikarashi 2 Nocho Nishi Ward
Niigata Prefecture
Niigata, 950-218
Japan

Hiroshi Iyetomi

Niigata University ( email )

8050 Ikarashi-2-cho
Nishi-ku
Niigata, 9502181
Japan

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

Hideaki Aoyama

RIKEN iTHEMS ( email )

Wako, Saitama 351-0198
Japan
+81-9019011954 (Phone)

Research Institute for Economy, Industry and Trade (RIETI) ( email )

1-3-1 Kasumigaseki
Chiyoda-ku
Tokyo 100-8901
Japan

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