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Firms and Their Networks

Objective

There is mounting evidence that firms are becoming more fragmented; production is less often made “in-house”. Firms buy inputs from abroad. Tasks are often split in parts. Some are offshored, others are subcontracted. Hence, firms buy services from other, local or international, firms. But they also supply inputs to other firms. Technical change, the internet, and globalization, all facilitate this transformation.

In order to better understand how firms thrive in the new global environment, the proposed research aims to construct a networks view of the firm. Fragmentation offers new opportunities: firms may specialize in what they make best, hence creating a business network of customers and suppliers. Networks are also useful to secure provision of fragmented tasks. The firms’ suppliers of goods and services – accountants, logisticians, consultants… -- may well be related to the firm through its workers’ social networks: family ties, boardroom relations… These social networks should be useful when times are tough -- board members could help find financing in banks where their schoolmates have a job – or when times are unusually good -- employees could help in spotting the right hires among their former co-workers.

The proposed research will focus on how firms social and business networks help firms to be resilient in the face of shocks. Resilience will be measured using the firms’ and workers’ outcomes – value-added, wages, employment, or occupations. The research will have a theoretical component using general equilibrium models with heterogeneous firms, an empirical component with unique data sources from at least two countries (France, Sweden), and an “econometric theory” component which will seek to develop techniques for the study of many-to-one matches in the presence of networks. The research will speak to the labor economics community but also to the international trade community, the management community, as well as the econometrics community.

Host institution

CENTRE NATIONAL DE LA RECHERCHE SCIENTIFIQUE CNRS
Net EU contribution
€ 960 330,00
Address
Rue Michel Ange 3
75794 Paris
France

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Region
Ile-de-France Ile-de-France Paris
Activity type
Research Organisations
Non-EU contribution
€ 0,00

Beneficiaries (3)

CENTRE NATIONAL DE LA RECHERCHE SCIENTIFIQUE CNRS
France
Net EU contribution
€ 960 330,00
Address
Rue Michel Ange 3
75794 Paris

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Region
Ile-de-France Ile-de-France Paris
Activity type
Research Organisations
Non-EU contribution
€ 0,00
Third-party

Legal entity other than a subcontractor which is affiliated or legally linked to a participant. The entity carries out work under the conditions laid down in the Grant Agreement, supplies goods or provides services for the action, but did not sign the Grant Agreement. A third party abides by the rules applicable to its related participant under the Grant Agreement with regard to eligibility of costs and control of expenditure.

GROUPE DES ECOLES NATIONALES D ECONOMIE ET STATISTIQUE
France
Net EU contribution
€ 450 000,00
Address
5 Avenue Henry Le Chatelier
91120 Palaiseau

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Region
Ile-de-France Ile-de-France Essonne
Activity type
Higher or Secondary Education Establishments
Non-EU contribution
€ 0,00
UPPSALA UNIVERSITET
Sweden
Net EU contribution
€ 342 957,89
Address
Von Kraemers Alle 4
751 05 Uppsala

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Region
Östra Sverige Östra Mellansverige Uppsala län
Activity type
Higher or Secondary Education Establishments
Non-EU contribution
€ 0,00