The Identification of Up- and Downstream Industries using Input–Output Tables and a Firm-level Application to Minority Shareholdings

Abstract

We present a method for identifying up- and downstream industries in inter-industry datasets via input–output tables. We apply this approach to aggregated European input–output data and present results on identified industry links and their sensitivity to threshold definitions. We furthermore test the time-consistency of the up- and downstream assignments based on input–output tables, and discuss the limitations of this method. Finally, the method is used to test anti-competitive effects of non-controlling minority shareholdings.

Foreign direct investment productivity premium and foreign affiliates' heterogeneity: A comparison between advanced and emerging market overseas investments in the EU

“…Another possible concern is that our results might be driven by an incorrect identification of upstream and downstream industries, since we used the US input–output matrix. So, following the referee's suggestion, we have classified horizontal and vertical relations using the European Input–Output matrix (see Bodnar, Buchwald, & Weche, ), which provides data at two or more aggregated NACE digit levels (i.e. food, beverage and tobacco products, textiles, wearing apparel, leather and related products) and considers only 19 countries.…”