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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.

Suggested Citation

  • Erol Taymaz & Yilmaz Kilicaslan, 2005. "Determinants of subcontracting and regional development: An empirical study on Turkish textile and engineering industries," Regional Studies, Taylor & Francis Journals, vol. 39(5), pages 633-645.
  • Handle: RePEc:taf:regstd:v:39:y:2005:i:5:p:633-645
    DOI: 10.1080/00343400500151913
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    References listed on IDEAS

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    1. Richard Arena & Joël-Thomas Ravix & P.M Romani, 1992. "Firm, coopération and subcontracting," Post-Print halshs-00469059, HAL.
    2. 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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    Citations

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    Cited by:

    1. Holl, Adelheid, 2008. "Production subcontracting and location," Regional Science and Urban Economics, Elsevier, vol. 38(3), pages 299-309, May.
    2. Manuel Artis & Raul Ramos & Jordi Suriñach, 2006. "Job losses, outsourcing and relocation, empirical evidence using microdata," IREA Working Papers 200601, University of Barcelona, Research Institute of Applied Economics, revised Dec 2006.
    3. Charlie Karlsson & Urban Gråsjö & Sofia Wixe (ed.), 2015. "Innovation and Entrepreneurship in the Global Economy," Books, Edward Elgar Publishing, number 15906.
    4. Katarzyna Kowalska, 2016. "Network Organizations And Corporate Social Responsibility," Oeconomia Copernicana, Institute of Economic Research, vol. 7(4), pages 653-668, December.
    5. T. Ciarli & R. Leoncini & S. Montresor & M. Valente, 2007. "Organisation of industry and innovation dynamics," Working Papers 609, Dipartimento Scienze Economiche, Universita' di Bologna.
    6. Antelo, Manel & Bru, Lluís, 2016. "Option contracts in a vertical industry," MPRA Paper 79241, University Library of Munich, Germany, revised 14 Apr 2017.
    7. 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.
    8. Davide Antonioli & Massimiliano Mazzanti & Sandro Montresor & Paolo Pini, 2015. "Outsourcing and Firm Productivity in a Specific Local Production System: Evidence from Reggio Emilia (Italy)," Growth and Change, Wiley Blackwell, vol. 46(2), pages 292-320, June.
    9. Kwangho Woo & Joonmo Cho, 2016. "Transferring the Cost of Wage Rigidity to Subcontracting Firms: The Case of Korea," Sustainability, MDPI, Open Access Journal, vol. 8(9), pages 1-15, August.
    10. 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.
    11. Roberto Antonietti & Maria Rosaria Ferrante & Riccardo Leoncini, 2016. "Local market size, social capital and outsourcing: evidence from Emilia Romagna," Small Business Economics, Springer, vol. 47(1), pages 243-260, June.
    12. Anna Giunta & Domenico Scalera & Francesco Trivieri & Jeffrey B. Nugent & Mariarosaria Agostino, 2011. "Firm Productivity, Organizational Choice and Global Value Chain," Working Papers 2011R09, Orkestra - Basque Institute of Competitiveness.
    13. Roberto Antonietti & Maria Rosaria Ferrante & Riccardo Leoncini, 2014. "Trust your neighbour. Industrial relatedness, social capital and outsourcing," Papers in Evolutionary Economic Geography (PEEG) 1403, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2014.
    14. Roberto Antonietti & Maria Rosaria Ferrante & Riccardo Leoncini, 2015. "Infrastructure endowment, social capital and outsourcing: evidence from Emilia Romagna, Italy," Chapters,in: Innovation and Entrepreneurship in the Global Economy, chapter 13, pages 310-330 Edward Elgar Publishing.
    15. repec:eee:ejores:v:261:y:2017:i:2:p:503-514 is not listed on IDEAS

    More about this item

    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;

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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