Choosing between foreign investment and subcontracting: Strategies of Italian firms

Giuseppe Tattara

EERI Research Paper Series from Economics and Econometrics Research Institute (EERI), Brussels

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.

Keywords: Foreign direct investment; International subcontracting. (search for similar items in EconPapers)
JEL-codes: D82 F23 (search for similar items in EconPapers)
Date: 2010-08-09
New Economics Papers: this item is included in nep-cse and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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