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Emerging Hubs in Central-Eastern Europe, Trade Blocs and Financial Co-operation

Author

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  • Giuseppe Tattara

Abstract

Many European countries have faced the erosion of the competitive advantage in the international market with a mixed strategy of productivity increase at home and labour cost reduction abroad, through the international fragmentation of production and subcontracting in low wage countries. Italy in particular, has delocalized segments of its industrial production in Eastern Europe. The advantage of delocalization abroad – with particular reference to East European countries – is due to the low cost of labour, depends from the capability to transmit information efficiently and the availability of a complete supply-type blueprint in the receiving country. The paper discusses the prospects open to Italia apparel firms and presents a case study dealing with the development of outsourcing by the Benetton group in the last decades.

Suggested Citation

  • Giuseppe Tattara, 2005. "Emerging Hubs in Central-Eastern Europe, Trade Blocs and Financial Co-operation," Industrial Organization 0511013, EconWPA.
  • Handle: RePEc:wpa:wuwpio:0511013
    Note: Type of Document - pdf; pages: 22. Fragmentation in the Italian apparel production
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/io/papers/0511/0511013.pdf
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    Citations

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    Cited by:

    1. Tattara, Giuseppe, 2005. "Il Diverso Modo In Cui Le Piccole Imprese Misurano Il Loro Successo
      [How Do Small Firms Growth?]
      ," MPRA Paper 10783, University Library of Munich, Germany.
    2. Giuseppe Tattara & Carlo Gianelle, 2007. "Producing abroad while making profits at home:Veneto footwear and clothing industry," Working Papers 2007_35, Department of Economics, University of Venice "Ca' Foscari".
    3. Tattara, Giuseppe, 2010. "Choosing between foreign investment and subcontracting: Strategies of Italian firms in Romania," MPRA Paper 23787, University Library of Munich, Germany.
    4. Tattara, Giuseppe & Gianelle, Carlo, 2006. "Produrre all'estero e fare profitti in patria: uno studio sulle imprese venete dell'abbigliamento e delle calzature," MPRA Paper 753, University Library of Munich, Germany.

    More about this item

    Keywords

    Vertical Integration; Global Organization of Production; Macroeconomics;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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