IDEAS home Printed from https://ideas.repec.org/p/eei/rpaper/eeri_rp_2010_09.html
   My bibliography  Save this paper

Choosing between foreign investment and subcontracting: Strategies of Italian firms

Author

Listed:
  • Giuseppe Tattara

Abstract

Vertical disintegration in most industries and the globalization of markets has led to significant changes in the pattern of international division of labour among manufacturing firms. At the same time increased competition from low cost producers, exchange rate constraints, the opening up of CEE countries have had huge consequences for the Italian industrial system. This paper deals with the Veneto footwear, furniture and refrigeraion industries and examines the effects of foreign direct investments and subcontracting in Romania. The reorganization of the division of labour, in the most dynamic suppliers induced a change in the “nature of subcontracting”, upgrading along the ladder of the value chain as more and more operations are offshored.

Suggested Citation

  • Giuseppe Tattara, 2010. "Choosing between foreign investment and subcontracting: Strategies of Italian firms," EERI Research Paper Series EERI_RP_2010_09, Economics and Econometrics Research Institute (EERI), Brussels.
    • Handle: RePEc:eei:rpaper:eeri_rp_2010_09
    as

    Download full text from publisher

    File URL: http://www.eeri.eu/documents/wp/EERI_RP_2010_09.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jovanović, Miroslav N., 2019. "The Supply Chain Economy: How Far does it Spread in Space and Time?," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 72(4), pages 393-452.
    2. Epede, Mesumbe Bianca & Wang, Daoping, 2022. "Global value chain linkages: An integrative review of the opportunities and challenges for SMEs in developing countries," International Business Review, Elsevier, vol. 31(5).
    3. Lorenzo Ciapetti, 2011. "Technological Change, Knowledge Integration and Adaptive Processes: The Mechatronic Evolution of the Reggio Emilia District," Chapters, in: Paul L. Robertson & David Jacobson (ed.), Knowledge Transfer and Technology Diffusion, chapter 5, Edward Elgar Publishing.
    4. Jan Fagerberg & Bengt-Åke Lundvall & Martin Srholec, 2018. "Global Value Chains, National Innovation Systems and Economic Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 533-556, July.
    5. Sjauw-Koen-Fa, August R. & Blok, Vincent & Omta, S.W.F. (Onno), 2016. "Critical Success Factors for Smallholder Inclusion in High Value-Adding Supply Chains by Food & Agribusiness Multinational Enterprise," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(1), pages 1-30, February.
    6. Stefano Micelli, 2012. "The metropolitan area of Venice in the changing economy of the North East," Chapters, in: Peter Karl Kresl & Daniele Ietri (ed.), European Cities and Global Competitiveness, chapter 8, pages 130-150, Edward Elgar Publishing.
    7. Gideon Ndubuisi & Solomon Owusu, 2021. "How important is GVC participation to export upgrading?," The World Economy, Wiley Blackwell, vol. 44(10), pages 2887-2908, October.
    8. Alex Hughes & Cheryl McEwan & David Bek, 2015. "Postcolonial Perspectives on Global Production Networks: Insights from Flower Valley in South Africa," Environment and Planning A, , vol. 47(2), pages 249-266, February.
    9. Viktória Endrődi-Kovács & Gábor Kutasi & Anikó Magasházi, 2018. "Visegrád Group Expertise and Position in the Samsung Global Value Chain: A Case Study of Samsung Electronics in the V4 Countries," Central European Business Review, Prague University of Economics and Business, vol. 2018(1), pages 14-36.
    10. Ayako Ebata & Hayley MacGregor & Michael Loevinsohn & Khine Su Win & Alexander W. Tucker, 0. "Value Chain Governance, Power and Negative Externalities: What Influences Efforts to Control Pig Diseases in Myanmar?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 0, pages 1-22.
    11. Emanuela Todeva & Ruslan Rakhmatullin, 2016. "Industry Global Value Chains, Connectivity and Regional Smart Specialisation in Europe. An Overview of Theoretical Approaches and Mapping Methodologies," JRC Research Reports JRC102801, Joint Research Centre.
    12. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    13. Keun Lee & Di Qu & Zhuqing Mao, 2021. "Global Value Chains, Industrial Policy, and Industrial Upgrading: Automotive Sectors in Malaysia, Thailand, and China in Comparison with Korea," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 275-303, April.
    14. Saurabh Arora & Naomi Baan Hofman & Vinod Koshti & Tommaso Ciarli, 2013. "Cultivating Compliance: Governance of North Indian Organic Basmati Smallholders in a Global Value Chain," Environment and Planning A, , vol. 45(8), pages 1912-1928, August.
    15. da Rocha, Angela & Kury, Beatriz & Tomassini, Rodrigo & Velloso, Luciana, 2017. "Strategic Responses to Environmental Turbulence: A Study of Four Brazilian Exporting Clusters," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 39, pages 155-174.
    16. Matanda, Margaret Jekanyika & Freeman, Susan, 2009. "Effect of perceived environmental uncertainty on exporter-importer inter-organisational relationships and export performance improvement," International Business Review, Elsevier, vol. 18(1), pages 89-107, February.
    17. Emanuele Bacchiocchi & Massimo Florio & Anna Giunta, 2012. "Internationalisation and the agglomeration effect in the global value chain: the case of Italian automotive suppliers," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 5(3), pages 267-290.
    18. Ebata, A. & Win, K.S. & Loevinsohn, M. & Macgregor, H., 2018. "Value chain governance and institutions behind biosecurity along pig value chains in Myanmar," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277082, International Association of Agricultural Economists.
    19. Los, Bart & Timmer, Marcel & Vries, Gaaitzen J. de, 2013. "Made in Europe? Trends in International Production Fragmentation," GGDC Research Memorandum GD-131, Groningen Growth and Development Centre, University of Groningen.
    20. Gerhard REINECKE & Anne POSTHUMA, 2019. "The link between economic and social upgrading in global supply chains: Experiences from the Southern Cone," International Labour Review, International Labour Organization, vol. 158(4), pages 677-703, December.

    More about this item

    Keywords

    Foreign direct investment; International subcontracting.;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eei:rpaper:eeri_rp_2010_09. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Julia van Hove (email available below). General contact details of provider: https://edirc.repec.org/data/eeriibe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.