The Theoretical Development of Endogenous Production Networks and Prospects for Its Application in China
In recent years,the production network model has gained significant traction both domestically and internationally,becoming a powerful tool for understanding and analyzing industrial linkages.Progress in natural science methodologies and the growing availability of micro-level economic datasets have greatly enhanced research approaches to the study of production networks.As the production network model advances,research on network structures is increasingly shifting toward endogenization.Compared to fixed structure production networks,endogenous production networks offer three core advantages.First,firms can endogenously choose input-output relationships,resulting in closer alignment with decision-making characteristics in the real world.Second,dynamic structures more effectively simulate the fluctuations and growth processes of the real-world economy.Third,the model captures heterogeneity and strategic behavior within dynamic network structures at the micro level.This paper first analyzes the equilibrium and economic logic of the fixed structure production network model and then reviews the development and modeling processes of endogenous production networks:linkage-cost networks derived from fixed structures,with three main sources of linkage costs and their practical extensions.This paper analyses firm linkage formation,summarizing approaches commonly used in existing literature,including complex networks,search-and-matching frameworks,and endogenous input/technology choice models.Next,this paper categorizes and discusses applications of endogenous production networks.Topics include regional trade and network dynamics,as well as applications to macroeconomic research.In addition,this paper explores key issues in applying endogenous production networks to the Chinese context and addresses considerations regarding datasets and methodological approaches.Compared to existing reviews,this paper provides a more comprehensive,systematic,and clear synthesis of the development of endogenous production networks.It not only enhances the theoretical and practical relevance of various classifications but also reclassifies and traces their origins in greater depth.Given that research on endogenous production networks remains nascent in Chinese literature,this paper serves as a theoretical reference and research framework for future studies.In particular,it identifies critical research topics relevant to the Chinese economy and provides an in-depth exploration of these areas,aiming to broaden the methodological horizons of China's production network research and contribute to new theoretical discoveries and policy insights.
endogenous production networkcostly relationship networkcomplex networksearch and matchinginput selection
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NSTL
万方数据
