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Determinants of subcontracting and regional development: An empirical study on Turkish textile and engineering industries

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  • Erol Taymaz
  • Yilmaz Kilicaslan

Abstract

Taymaz E. and Kilicaslan Y. (2005) Determinants of subcontracting and regional development: an empirical study on Turkish textile and engineering industries, Regional Studies 39 , 633-645. Recent studies on small- and medium-sized establishments emphasize the importance of networking and regional clusters for (regional) industrial development. This study is focused on an important form of cooperation between firms: the subcontracting relationship. The aim is to identify the determinants of subcontracting in Turkish textile and engineering industries and to derive policy implications from our empirical analysis. Subcontract offering and subcontract receiving models are estimated for both industries by using panel data on all establishments employing ten or more workers between 1993 and 2000. The findings show that a short-term/unequal relationship exists between clients and subcontractors in the textile industry, whereas subcontracting relationships in the engineering industry are established between 'similar', relatively advanced firms with complementary assets and technologies. Moreover, subcontracting flourishes in regions densely populated by firms.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 39 (2005)
Issue (Month): 5 ()
Pages: 633-645

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Handle: RePEc:taf:regstd:v:39:y:2005:i:5:p:633-645

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Related research

Keywords: Subcontracting; Networks; Industrial development; Regional development; Sous-traitance; Reseaux; Developpement industriel; Amenagement du territoire; Vertragliche Weitergabe; Netzwerke; industrielle Entwicklung; Regionalentwicklung; Subcontratacion; Redes; Desarrollo industrial; Desarrollo regional; JEL classifications: L6; L24; R11; R12;

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References

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  1. Gonzalez-Diaz, Manuel & Arrunada, Benito & Fernandez, Alberto, 2000. "Causes of subcontracting: evidence from panel data on construction firms," Journal of Economic Behavior & Organization, Elsevier, vol. 42(2), pages 167-187, June.
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Cited by:
  1. Roberto Antonietti & Giulio Cainelli, 2011. "Geographic concentration and vertical disintegration in KIBS: evidence from the metropolitan area of Milan," Openloc Working Papers 1105, Public policies and local development.
  2. T. Ciarli & R. Leoncini & S. Montresor & M. Valente, 2007. "Organisation of industry and innovation dynamics," Working Papers 609, Dipartimento Scienze Economiche, Universita' di Bologna.
  3. Antonietti, Roberto & Cainelli, Giulio & Lupi, Claudio, 2013. "Vertical disintegration and spatial co-localization: The case of Kibs in the metropolitan region of Milan," Economics Letters, Elsevier, vol. 118(2), pages 360-363.
  4. Manuel Artís & Raul Ramos & Jordi Suriñach, 2006. "Job losses, outsourcing and relocation: Empirical evidence using microdata," Working Papers CREAP2006-05, Xarxa de Referència en Economia Aplicada (XREAP), revised Oct 2006.
  5. Adelheid Holl, 2007. "Production Subcontracting and Location," Working Papers 2007-17, FEDEA.
  6. Mariarosaria Agostino & Jeffrey B. Nugent & Domenico Scalera & Francesco Trivieri & Anna Giunta, 2011. "Firm Productivity, Organizational Choice and Global Value Chain," Working Papers 2011R09, Basque Institute of Competitiveness.

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