Face-to-face communication and production networks: Evidence from first trans-Siberian flights

Face-to-face communication and production networks: Evidence from first trans-Siberian flights | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Face-to-face communication and production networks: Evidence from first trans-Siberian flights Kiyoyasu Tanaka This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-4499673/v1 This work is licensed under a CC BY 4.0 License Status: Published Journal Publication published 17 Apr, 2025 Read the published version in Review of World Economics → Version 1 posted 5 You are reading this latest preprint version Abstract Face-to-face communication (FFC) helps to coordinate production networks between suppliers and manufacturers. However, the significance of FFC in production networks is not empirically clear. This paper uses the new opening of nonstop passenger flights between Tokyo and Europe over Siberian routes from 1986 as an exogenous decline in FFC costs for Japanese firms. Estimating the impact of nonstop trans-Siberian flights on Japan’s exports in intermediate inputs for 1980–1989, I find the significantly positive impact of nonstop flights on exports from Japan to European destinations; 7 more nonstop flights increased the exports by 26%. The results are robust to changes in flight networks such as indirect passenger and freight flights. I show evidence to suggest that the opening of nonstop flights increased the exports mainly through a reduction in FFC costs, rather than other trade barriers. Thus, FFC plays a critical role in shaping production networks. JEL Classification : F14, F15, R4 Communication trade intermediate input flight Japan Full Text Cite Share Download PDF Status: Published Journal Publication published 17 Apr, 2025 Read the published version in Review of World Economics → Version 1 posted Editorial decision: Revisions needed 29 Aug, 2024 Reviewers agreed at journal 17 Jun, 2024 Reviewers invited by journal 15 Jun, 2024 Editor assigned by journal 30 May, 2024 First submitted to journal 29 May, 2024 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-4499673","acceptedTermsAndConditions":true,"allowDirectSubmit":false,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":314861920,"identity":"d853a531-afa0-49d1-ac7e-a25e87eb672e","order_by":0,"name":"Kiyoyasu Tanaka","email":"data:image/png;base64,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","orcid":"https://orcid.org/0000-0002-1362-1100","institution":"Institute of Developing Economies, JETRO","correspondingAuthor":true,"prefix":"","firstName":"Kiyoyasu","middleName":"","lastName":"Tanaka","suffix":""}],"badges":[],"createdAt":"2024-05-30 01:41:19","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-4499673/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-4499673/v1","draftVersion":[],"editorialEvents":[{"content":"https://doi.org/10.1007/s10290-025-00589-1","type":"published","date":"2025-04-17T15:57:58+00:00"}],"editorialNote":"","failedWorkflow":false,"files":[{"id":81051009,"identity":"7fd5f813-2d79-4707-bac5-b3af89689e53","added_by":"auto","created_at":"2025-04-21 16:09:44","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":484050,"visible":true,"origin":"","legend":"","description":"","filename":"manuscriptall.pdf","url":"https://assets-eu.researchsquare.com/files/rs-4499673/v1_covered_a31ad896-671b-4fd0-a6c9-1d6cb7b04e78.pdf"}],"financialInterests":"","formattedTitle":"Face-to-face communication and production networks: Evidence from first trans-Siberian flights","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":false,"highlight":"","institution":"","isAcceptedByJournal":true,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":true,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"review-of-world-economics","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"rowe","sideBox":"Learn more about [Review of World Economics](http://link.springer.com/journal/10290)","snPcode":"10290","submissionUrl":"https://www.editorialmanager.com/rowe/default2.aspx","title":"Review of World Economics","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"em","reportingPortfolio":"Springer Hybrid","inReviewEnabled":true,"inReviewRevisionsEnabled":false},"keywords":"Communication, trade, intermediate input, flight, Japan","lastPublishedDoi":"10.21203/rs.3.rs-4499673/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-4499673/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eFace-to-face communication (FFC) helps to coordinate production networks between suppliers and manufacturers. However, the significance of FFC in production networks is not empirically clear. This paper uses the new opening of nonstop passenger flights between Tokyo and Europe over Siberian routes from 1986 as an exogenous decline in FFC costs for Japanese firms. Estimating the impact of nonstop trans-Siberian flights on Japan’s exports in intermediate inputs for 1980–1989, I find the significantly positive impact of nonstop flights on exports from Japan to European destinations; 7 more nonstop flights increased the exports by 26%. The results are robust to changes in flight networks such as indirect passenger and freight flights. I show evidence to suggest that the opening of nonstop flights increased the exports mainly through a reduction in FFC costs, rather than other trade barriers. Thus, FFC plays a critical role in shaping production networks.\u003c/p\u003e\n\u003cp\u003e\u003cem\u003e\u003cstrong\u003eJEL Classification\u003c/strong\u003e\u003c/em\u003e\u003cstrong\u003e:\u003c/strong\u003e F14, F15, R4\u003c/p\u003e","manuscriptTitle":"Face-to-face communication and production networks: Evidence from first trans-Siberian flights","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2024-07-02 13:31:37","doi":"10.21203/rs.3.rs-4499673/v1","editorialEvents":[{"type":"communityComments","content":0},{"type":"decision","content":"Revisions needed","date":"2024-08-29T04:24:37+00:00","index":"","fulltext":""},{"type":"reviewerAgreed","content":"","date":"2024-06-17T19:25:11+00:00","index":0,"fulltext":""},{"type":"reviewersInvited","content":"","date":"2024-06-15T17:23:32+00:00","index":"","fulltext":""},{"type":"editorAssigned","content":"","date":"2024-05-30T05:33:53+00:00","index":"","fulltext":""},{"type":"submitted","content":"Review of World Economics","date":"2024-05-29T21:40:25+00:00","index":"","fulltext":""}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"review-of-world-economics","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"rowe","sideBox":"Learn more about [Review of World Economics](http://link.springer.com/journal/10290)","snPcode":"10290","submissionUrl":"https://www.editorialmanager.com/rowe/default2.aspx","title":"Review of World Economics","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"em","reportingPortfolio":"Springer Hybrid","inReviewEnabled":true,"inReviewRevisionsEnabled":false}}],"origin":"","ownerIdentity":"68df31ec-a5d7-4a97-84c7-8b8a10de8ad3","owner":[],"postedDate":"July 2nd, 2024","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"published-in-journal","subjectAreas":[],"tags":[],"updatedAt":"2025-04-21T16:04:42+00:00","versionOfRecord":{"articleIdentity":"rs-4499673","link":"https://doi.org/10.1007/s10290-025-00589-1","journal":{"identity":"review-of-world-economics","isVorOnly":false,"title":"Review of World Economics"},"publishedOn":"2025-04-17 15:57:58","publishedOnDateReadable":"April 17th, 2025"},"versionCreatedAt":"2024-07-02 13:31:37","video":"","vorDoi":"10.1007/s10290-025-00589-1","vorDoiUrl":"https://doi.org/10.1007/s10290-025-00589-1","workflowStages":[]},"version":"v1","identity":"rs-4499673","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-4499673","identity":"rs-4499673","version":["v1"]},"buildId":"qtupq5eGEP_6zYnWcrvyt","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}