a column by Daisuke Fujii, Yukiko Saito and Tatsuro Senga for VOX: CEPR’s Policy Portal
Firms develop inter-firm networks throughout their lifecycles, continually adding and dropping trading partners. This column examines the role that the dynamics of these networks play in firm growth. The findings point to the importance of searching for potential trading partners and learning match-specific productivity for younger firms. Surviving older firms, in contrast, tend to enjoy a stable set of customers and suppliers to keep their operations.
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