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Subcontracting in the Italian industry. Labour Division, Firms’ Growth and North-South Divide

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  • Giunta, Anna
  • Nifo, Annamaria
  • Scalera, Domenico

Abstract

By 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.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13084.

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Date of creation: 19 Jan 2009
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Handle: RePEc:pra:mprapa:13084

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Keywords: subcontracting; growth; location;

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Cited by:
  1. 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, Associazione Rossi Doria, issue 2, June.
  2. Davide Bubbico, 2014. "Economic Actors and Local Institutions in Activities in Support of the Automotive Sector in Southern Italy," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, Associazione Rossi Doria, issue 4, January.
  3. Petraglia C. & Scalera D., 2012. "Le politiche per il Mezzogiorno negli anni della crisi (2007-2012)," Rivista economica del Mezzogiorno, Società editrice il Mulino, Società editrice il Mulino, issue 4, pages 1023-1048.
  4. Mariarosaria Agostino & Jeffrey B. Nugent & Domenico Scalera & Francesco Trivieri & Anna Giunta, 2011. "Firm Productivity, Organizational Choice and Global Value Chain," Working Papers, Basque Institute of Competitiveness 2011R09, Basque Institute of Competitiveness.
  5. Accetturo Antonio & Giunta Anna & Rossi Salvatore, 2011. "The Italian Firms between Crisis and the new Globalization," L'industria, Società editrice il Mulino, Società editrice il Mulino, issue 1, pages 145-164.

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