Spatial Architecture of the Production Networks

Abstract: The main purpose of this paper is to provide empirical evidence on the inter-firm production networks in Southeast Asian developing economies. Using firm-level data obtained from a questionnaire survey of manufacturing firms in Indonesia, the Philippines, Thailand, and Vietnam in 2008, this paper presents the regional distribution of main customers and suppliers and their geographical proximity. Firm-level capabilities and transaction costs associated with specific inter-firm relationships would influence the distances between customers and suppliers. Ordered logistic estimations are carried out to examine factors affecting the spatial architecture of the production networks in the region