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

  • Giuseppe Tattara

    ()

    (Department of Economics, University Of Venice Cà Foscari)

  • Carlo Gianelle

    (Siena, dottorato in economia)

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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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
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Handle: RePEc:ven:wpaper:2007_35
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  1. 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.
  2. Robert C. Feenstra, . "Integration Of Trade And Disintegration Of Production In The Global Economy," Department of Economics 98-06, California Davis - Department of Economics.
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  8. 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.
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  10. 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.
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