Indian Journal of Science and Technology
Year: 2016, Volume: 9, Issue: 26, Pages: 1-9
Yun-Jung Lee1 , Su-Do Kim1 , Jang-Pyo Hong2 , Hwan-Gue Cho3 and Seong-Min Yoon4*
1 Research Institute for Social Criticality, [email protected]
2 School of Economics, [email protected]
3 Department of Computer Science, [email protected]
4 Department of Economics, [email protected]
*Author for correspondence
Department of Economics,
Email: [email protected]
Background/Objectives: Inter-firm transaction data can be used as basic information to grasp the effectiveness and robustness of country’s economic activity. Methods/Statistical Analysis: In this paper, we constructed and analyzed an inter-firm network and inter-industry network using inter-firm transaction data from KED. From the result of analysis, we found that the distribution of transaction frequency between companies tends to follow the power-law distribution. This is because a large number of companies have trading connections few firms such as a conglomerate, implying that most transactions are concentrated in the major companies. And we analyzed the transaction type of each industry using the E-I index. According to the result, the companies which belong to the service-related industries tend to trade with the companies in other industries. Otherwise, the companies which belong to the motor manufacture-related industry and the electronic-related industry do a lot of trade with the companies in same industries. Especially, the network structure of these industries is hierarchized as a tree structure in comparison with other industries. Findings: From the interindustry transaction network, we also found that the industries in Korea are largely divided into two groups: Domestic service industries and export manufacturing. These two sub-networks commonly form a tree structure representing the hierarchical flow of transactions where a transaction flows from leaf nodes to root node in the inter-industry network. Application/Improvements: The General Construction industry is the root node that is located at the top in the network of domestic service industries. And the electronic and computer-related industries are the root nodes in the network of export manufacturing.
Keywords: E-I Index, Hierarchical Network, Inter-Firm Transaction Network, Inter-Industry Transaction Network, Social Network Analysis, Tree Structure
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