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Linkages of Firm Spending Behavior through Supply Chains

日本語

August 12, 2026
Ko Adachi*1
Kosuke Aoki*2
Yoshiyuki Kurachi*3
Taiki Ono*4
Akitoshi Toyoda*5

Abstract

This paper empirically analyzes the linkages of firm spending behavior along supply chains, with a focus on capital investment and wage-setting, using production network data from Japan's manufacturing sector. The analysis yields the following findings. First, there is evidence of bonus linkages within supply chains, originating from temporary foreign demand shocks. Second, more broadly, the capital investment of firms can be influenced by downstream investment activity in supply chains, whether domestically or internationally. In addition, the determination of regular wages within a firm appears to be influenced by the wage rates set by focal firms within the same supply chains. These results underscore the importance of analyzing firm behavior while taking into account the multilayered supply chain structure centered around large manufacturing firms in order to understand Japan's economic dynamics.

JEL classification
D22, E22, J31, L14

Keywords
Supply Chain, Firm-to-Firm Transaction Data, Firm Behavior, Linkages

The authors would like to thank Hibiki Ichiue, Ryo Jinnai, Naoya Kato, Takuji Kawamoto, Takuji Kondo, Tomohiro Sugo, and Masaki Tanaka for their helpful comments and discussions. We would also like to express our gratitude to the Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry (METI) for providing data from the Annual Business Survey; the METI for providing data from the Census of Manufacture, the Basic Survey of Japanese Business Structure and Activities, and the Basic Survey on Overseas Business Activities; the Ministry of Health, Labour and Welfare for providing data from the Basic Survey on Wage Structure and the Survey on Wage Increase; the Ministry of Finance for providing data from the Quarterly Financial Statements Statistics of Corporations by Industry. Any remaining errors are attributable to the authors. The views expressed in this paper are those of the authors and do not represent the official views of the Bank of Japan.

  1. *1Research and Statistics Department, Bank of Japan (currently Monetary Affairs Department)
    E-mail : kou.adachi@boj.or.jp
  2. *2Graduate School of Economics, University of Tokyo
    E-mail : kaoki@e.u-tokyo.ac.jp
  3. *3Research and Statistics Department, Bank of Japan
    E-mail : yoshiyuki.kurachi@boj.or.jp
  4. *4Research and Statistics Department, Bank of Japan
    E-mail : taiki.ono@boj.or.jp
  5. *5Research and Statistics Department, Bank of Japan (currently Financial System and Bank Examination Department)
    E-mail : akitoshi.toyoda@boj.or.jp

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