Subcontracting in the Italian industry. Labour Division, Firms’ Growth and North-South Divide
AbstractBy making use of a 4000 firms database, this paper analyzes the dynamics of division of labour among Italian manufacturing firms during the '90s, and seeks to assess the impact that subcontracting has on manufacturing firms' growth. In particular, we investigate the relationship between labour division and firms' growth with three specific objectives: a) to understand whether and how subcontracting may have affected firms' growth dynamics; b) to test if larger growth could be due to stronger incentives to innovate for subcontracting firms and c) to study the joint influence of subcontracting and location in Southern Italy on growth. The main results are that i) the propensity to carry out subcontracting activities is relevant for growth, especially when allowing for a nonlinear relationship between growth and subcontracting; ii) more innovative subcontracting firms are also more susceptible to grow and iii) the deep dualism of the Italian industrial structure is once again confirmed, as Southern subcontractors show poorer performances and slower growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 13084.
Date of creation: 19 Jan 2009
Date of revision:
subcontracting; growth; location;
Find related papers by JEL classification:
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roberta Rabellotti & Alessia Amighini, 2003. "The effect of globalisation on industrial districts in Italy: evidence from the footwear sector," ERSA conference papers ersa03p500, European Regional Science Association.
- Paul Bergin & Robert Feenstra, 2006.
"Outsourcing and Volatility,"
628, University of California, Davis, Department of Economics.
- Variyam, Jayachandran N. & Kraybill, David S., 1992. "Empirical evidence on determinants of firm growth," Economics Letters, Elsevier, vol. 38(1), pages 31-36, January.
- McPherson, Michael A., 1996. "Growth of micro and small enterprises in southern Africa," Journal of Development Economics, Elsevier, vol. 48(2), pages 253-277, March.
- Francesco Daveri & Cecilia Jona-Lasinio, 2008.
"Off-Shoring and Productivity Growth in the Italian Manufacturing Industries,"
CESifo Working Paper Series
2288, CESifo Group Munich.
- Francesco Daveri & Cecilia Jona-Lasinio, 2008. "Off-Shoring and Productivity Growth in the Italian Manufacturing Industries," Working Papers 339, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- F. Daveri & C. Jona-Lasinio, 2007. "Off-shoring and productivity growth in the Italian manufacturing industries," Economics Department Working Papers 2007-EP08, Department of Economics, Parma University (Italy).
- James Heintz, 2006. "Low-wage manufacturing and global commodity chains: a model in the unequal exchange tradition," Cambridge Journal of Economics, Oxford University Press, vol. 30(4), pages 507-520, July.
- Audretsch, David B & Klomp, Luuk & Thurik, A R Roy, 1997.
"Do Services Differ From Manufacturing? The Post-Entry Performance of Firms in Dutch Services,"
CEPR Discussion Papers
1718, C.E.P.R. Discussion Papers.
- D.B. Audretsch & Luuk Klomp & A.R. Thurik, 1998. "Do Services differ from Manufacturing? The Post-Entry Performance of Firms in Dutch Services," Tinbergen Institute Discussion Papers 98-012/3, Tinbergen Institute.
- Anna Giunta & Domenico Scalera, 2007.
"L'impresa subfornitrice:redditività,produttività e divari territoriali,"
Departmental Working Papers of Economics - University 'Roma Tre'
0076, Department of Economics - University Roma Tre.
- Anna Giunta & Domenico Scalera, 2007. "L'impresa subfornitrice: redditività, produttività e divari territoriali," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2007(3), pages 123-146.
- Riccaboni, Massimo & Pammolli, Fabio, 2002.
"On firm growth in networks,"
Elsevier, vol. 31(8-9), pages 1405-1416, December.
- Robert Feenstra & Gordon Hanson, 2001. "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages," NBER Working Papers 8372, National Bureau of Economic Research, Inc.
- Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
- Harhoff, Dietmar & Stahl, Konrad & Woywode, Michael, 1998.
"Legal Form, Growth and Exit of West German Firms--Empirical Results for Manufacturing, Construction, Trade and Service Industries,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 46(4), pages 453-88, December.
- Harhoff, Dietmar & Stahl, Konrad O. & Woywode, Michael, 1996. "Legal Form, Growth and Exit of West German Firms - Empirical Results for Manufacturing, Construction, Trade and Service Industries," CEPR Discussion Papers 1401, C.E.P.R. Discussion Papers.
- John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
- Blandina Oliveira & Adelino Fortunato, 2003.
"Testing Gibrat’s Law: Empirical Evidence from a Panel of Portuguese Manufacturing Firms,"
GEMF Working Papers
2003-07, GEMF - Faculdade de Economia, Universidade de Coimbra.
- Blandina Oliveira & Adelino Fortunato, 2006. "Testing Gibrat's Law: Empirical Evidence from a Panel of Portuguese Manufacturing Firms," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 13(1), pages 65-81.
- Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001.
"The nature and growth of vertical specialization in world trade,"
Journal of International Economics,
Elsevier, vol. 54(1), pages 75-96, June.
- David Hummels & Jun Ishii & Kei-Mu Yi, 1999. "The nature and growth of vertical specialization in world trade," Staff Reports 72, Federal Reserve Bank of New York.
- Bengt Holmstrom & John Roberts, 1998. "The Boundaries of the Firm Revisited," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 73-94, Fall.
- P. Geroski, 1998.
"An Applied Econometrician's View of Large Company Performance,"
Review of Industrial Organization,
Springer, vol. 13(3), pages 271-294, June.
- Geroski, Paul A, 1998. "An Applied Econometrician's View of Large Company Performance," CEPR Discussion Papers 1862, C.E.P.R. Discussion Papers.
- David B. Audretsch & A. Roy Thurik, 1999. "Innovation, Industry Evoluation and Employment," Tinbergen Institute Discussion Papers 99-068/3, Tinbergen Institute.
- Evans, David S, 1987. "Tests of Alternative Theories of Firm Growth," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 657-74, August.
- Silvia Sacchetti & Roger Sugden, 2003. "The Governance of Networks and Economic Power: The Nature and Impact of Subcontracting Relationships," Journal of Economic Surveys, Wiley Blackwell, vol. 17(5), pages 669-692, December.
- Newey, Whitney K & West, Kenneth D, 1987. "Hypothesis Testing with Efficient Method of Moments Estimation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(3), pages 777-87, October.
- 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.
- Antonio Accetturo & Anna Giunta & Salvatore Rossi, 2011.
"The Italian firms between crisis and the new globalization,"
Questioni di Economia e Finanza (Occasional Papers)
86, Bank of Italy, Economic Research and International Relations Area.
- Accetturo Antonio & Giunta Anna & Rossi Salvatore, 2011. "The Italian Firms between Crisis and the new Globalization," L'industria, Società editrice il Mulino, issue 1, pages 145-164.
- Petraglia C. & Scalera D., 2012. "Le politiche per il Mezzogiorno negli anni della crisi (2007-2012)," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 4, pages 1023-1048.
- Annamaria Nifo & Domenico Scalera, 2011. "Structural Changes in Italian Industry: The Impact of Crisis. A Comment on the Book Edited by Laura Rondi and Francesco Silva," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.