Subcontracting dynamics and economic development: A study on textile and engineering industries
Recent studies on small and medium sized establishments emphasize the importance of networking and regional clusters for industrial development. This study is focused on an important form of cooperation between firms: subcontracting relationship. Our aim is to estimate the determinants of subcontracting in Turkish textile and engineering industries, and to derive policy implications of our estimates. We estimate subcontract offering and subcontract receiving models for both industries by using panel data on all establishments employing 25 or more workers in the period 1988-97. Our findings show that short-term/unequal relationship exists between parent firms and subcontractors in the textile industry whereas subcontracting relationships in the engineering industry are established between "similar", relatively advanced firms that have complementary assets and technologies.
|Date of creation:||Aug 2001|
|Date of revision:||Aug 2001|
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- 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.
- Manuel González & Benito Arruñada & Alberto Fernández, 1999. "Causes of subcontracting: Evidence from panel data on construction firms," Economics Working Papers 428, Department of Economics and Business, Universitat Pompeu Fabra.
- Christerson, Brad & Appelbaum, Richard P., 1995. "Global and local subcontracting: Space, ethnicity, and the organization of apparel production," World Development, Elsevier, vol. 23(8), pages 1363-1374, August.
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