Japanese Network Economy-ERGM analysis of the “Big Six”

Abstract

The paper analyses the network of relationships between large companies that defines the Japanese economy using ERGM (Exponential Random Graph Model) method. The Japanese economy, because of the presence of keiretsu groups and other corporate groups, is an excellent example of what can happen to a country’s economy if large corporations and financial institutions in the market operate in a closely interconnected, highly centralized and dependent network. This is an important issue, because this economic practice is happening globally right now. Therefore, the interpretation of the Japanese network and the analysis of its economic performance also reflect the long-term negative and positive effects of this trend.