No. 1549 - Beyond firm size: network position and shock transmission in firm-to-firm production networks across five economies

Temi di discussione (Working papers)
by G. Magerman, A. Palazzolo, E. Dhyne, A. Borsos, D. Kulikov, A. Linarello, A. Paulus, G. Romanini and M. Saldias
October 2026
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This paper compares supplier networks in Italy, Belgium, Estonia, Hungary and Portugal using harmonized data on transactions between firms. It examines the distribution of buyer-supplier relationships, firms' positions in the production chain, and how these networks shape the transmission of shocks, especially monetary policy shocks.

The analysis shows that trade between firms is concentrated in a small number of buyer-supplier relationships. It also finds that supplier networks are substantially less interconnected than sectoral input-output tables suggest. Firms' positions in the production chain help explain how shocks are transmitted: simulations for Italy and Belgium indicate that upstream firms contribute more to changes in final product prices following monetary tightening.

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  1. 20 October 2026
    No. 1549 - Beyond firm size: network position and shock transmission in firm-to-firm production networks across five economies
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