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NAKAMURA Tsuyoshi
Department Tokyo Keizai University , Economics Position Professor |
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| Language | English |
| Publication Date | 2022/08 |
| Type | paper(other) |
| Title | Japanese Firms' Markups and Firm-to-firm Transactions |
| Contribution Type | Joint author |
| Journal | RIETI Discussion Paper |
| Journal Type | Japan |
| Publisher | Research Institute of Economy, Trade, and Industry |
| Volume, Issue, Page | (22-E-083) |
| Total page number | 41 |
| Author and coauthor | NAKAMURA, Tsuyoshi and OHASHI, Hiroshi |
| Details | This paper empirically studies the relationship between the markups of firms and their firm-to-firm transactional status. More specifically, we analyze the correlation between markups and the number and variety of the firm’s transactional partners. Based on a comprehensive panel dataset of Japanese firms derived from the Basic Survey of Japanese Business Structure and Activities, provided by METI, and the Firm Relation File of TSR (Tokyo Shoko Research) for 2007-2018, we find that a firm's markup level decreases as the number of suppliers increases, after controlling for firm attributes such as size and age, and industry-specific time effects. This empirical pattern is observed for both manufacturing and non-manufacturing sectors. As for the firm’s number of customers, the empirical results differ between manufacturing and non-manufacturing sectors. |