Project description:
OECD member countries are increasingly interested in policies to help firms respond to disruptions due to climate change, the digital transition, or foreign supply chain shocks. Firms have been dividing their production processes into an increasing number of stages, each performed by a different domestic or foreign firm. This can amplify potential shocks and complicates the design of business support policies, in particular targeting, as the risk of spillovers rises with firm linkages.
A new type of data has become available to study shocks and spillovers in these fragmented production networks: firm-to-firm transaction data. These datasets currently exist in at least 15 countries. Transaction data capture sales and purchases made between firms in a domestic economy, most often as a by-product of value-added tax (VAT) records.
To maximise the benefits of these data for policy makers, LIFT coordinates an international network of national administrations, practitioners and researchers with access and interest in using firm-to-firm transaction data. Research using this data is gaining momentum, but differences in data and methodology make cross-country comparisons difficult to interpret, while existing datasets in other countries remain untapped.
The objective is to use this network of stakeholders that either manage or use these data to work on common policy questions with a shared methodology and unlock new data sources for policy-relevant analysis. Although focused on policy, the network will also hold workshops, conferences, and be a focal point for the research community. The network will also strive to produce quality research suitable for peer-reviewed academic publications.