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Producing abroad while making profits at home:Veneto footwear and clothing industry

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Author Info

  • Giuseppe Tattara

    ()
    (Department of Economics, University Of Venice Cà Foscari)

  • Carlo Gianelle

    (Siena, dottorato in economia)

Abstract

Over the last twenty years globalisation has brought about a sharp increase in the real and financial integration of the worldwide economy. In this closely knit context, the outsourcing of some of the productive and trade activities abroad has become one of the focal points of the policies followed by businesses in order to handle competition at worldwide level. In the 80s Italian clothing and footwear firms faced the increased competition in the international markets by outsourcing to domestic subcontractors and in the 90s transferred much of the previous outsourcing abroad, in countries with low labour costs, mainly in Eastern Europe, North Africa and East Asia. This paper is aimed to assess the impact of the offshoring strategy on firms. performance. It is based on a survey delivered to a group of 70 final producers, operating in the Veneto, that during the 90s began to manage production on a global scale. Direct investments, subcontracting and partnerships that materialize in product manufacturing abroad are considered as forms of international outsourcing. On this basis, by combining direct observations with balance sheets data, and data on employment stock at the firm’s level, the impact of the offshoring decision is evaluated. The study shows the importance of production management along the global value chain in giving new competitivity to the Veneto traditional sector.

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Bibliographic Info

Paper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2007_35.

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Date of creation: 2007
Date of revision:
Handle: RePEc:ven:wpaper:2007_35

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Web page: http://www.unive.it/dip.economia
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Related research

Keywords: production organization; global value chains; fragmentation; internationalization; clothing industry; Italy;

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References

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  1. Robert Feenstra, 2003. "Integration Of Trade And Disintegration Of Production In The Global Economy," Working Papers 986, University of California, Davis, Department of Economics.
  2. 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.
  3. Hsiao,Cheng, 2003. "Analysis of Panel Data," Cambridge Books, Cambridge University Press, number 9780521522717, October.
  4. Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
  5. James J. Heckman & Jeffrey A. Smith, 1999. "The Pre-Program Earnings Dip and the Determinants of Participation in a Social Program: Implications for Simple Program Evaluation Strategies," NBER Working Papers 6983, National Bureau of Economic Research, Inc.
  6. M.J. Gordon, 2004. "How Third World Contracting Is Transformed into First World Productivity," Challenge, M.E. Sharpe, Inc., vol. 47(1), pages 78-85, January.
  7. Heckman, James J & Smith, Jeffrey A, 1999. "The Pre-programme Earnings Dip and the Determinants of Participation in a Social Programme. Implications for Simple Programme Evaluation Strategies," Economic Journal, Royal Economic Society, vol. 109(457), pages 313-48, July.
  8. Bugamelli Matteo & Cipollone Piero & Infante Luigi, 2000. "L'internazionalizzazione delle imprese italiane negli anni Novanta," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 349-386.
  9. Giuseppe Tattara, 2005. "Emerging Hubs in Central-Eastern Europe, Trade Blocs and Financial Co-operation," Industrial Organization 0511013, EconWPA.
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Cited by:
  1. Giuseppe Tattara, 2008. "The Internationalisation of Production Activities of Italian Industrial Districts," Working Papers 2008_13, Department of Economics, University of Venice "Ca' Foscari".
  2. Serafinelli, Michel, 2013. "Good Firms, Worker Flows and Productivity," MPRA Paper 49055, University Library of Munich, Germany, revised 12 Aug 2013.

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