Economics at your fingertips  

Subcontracting dynamics and economic development: A study on textile and engineering industries

Erol Taymaz () and Yilmaz Kilicaslan ()

No 108, ERC Working Papers from ERC - Economic Research Center, Middle East Technical University

Abstract: 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.

Keywords: Subcontracting; firm cooperation; vertical integration (search for similar items in EconPapers)
JEL-codes: L14 L22 L61 L67 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2001-08, Revised 2001-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) First version, 2001 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found ( [301 Moved Permanently]-->

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in ERC Working Papers from ERC - Economic Research Center, Middle East Technical University Contact information at EDIRC.
Bibliographic data for series maintained by Erol Taymaz ().

Page updated 2020-03-29
Handle: RePEc:met:wpaper:0108