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Determinants of subcontracting and regional development: An empirical study on Turkish textile and engineering industries

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  • Erol Taymaz
  • Yilmaz Kilicaslan

Abstract

Taymaz E. and Kilicaslan Y. (2005) Determinants of subcontracting and regional development: an empirical study on Turkish textile and engineering industries, Regional Studies 39 , 633-645. Recent studies on small- and medium-sized establishments emphasize the importance of networking and regional clusters for (regional) industrial development. This study is focused on an important form of cooperation between firms: the subcontracting relationship. The aim is to identify the determinants of subcontracting in Turkish textile and engineering industries and to derive policy implications from our empirical analysis. Subcontract offering and subcontract receiving models are estimated for both industries by using panel data on all establishments employing ten or more workers between 1993 and 2000. The findings show that a short-term/unequal relationship exists between clients and subcontractors in the textile industry, whereas subcontracting relationships in the engineering industry are established between 'similar', relatively advanced firms with complementary assets and technologies. Moreover, subcontracting flourishes in regions densely populated by firms.

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  • Erol Taymaz & Yilmaz Kilicaslan, 2005. "Determinants of subcontracting and regional development: An empirical study on Turkish textile and engineering industries," Regional Studies, Taylor & Francis Journals, vol. 39(5), pages 633-645.
    • Handle: RePEc:taf:regstd:v:39:y:2005:i:5:p:633-645
    DOI: 10.1080/00343400500151913
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    References listed on IDEAS

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    11. Antonietti, Roberto & Cainelli, Giulio & Lupi, Claudio, 2013. "Vertical disintegration and spatial co-localization: The case of Kibs in the metropolitan region of Milan," Economics Letters, Elsevier, vol. 118(2), pages 360-363.
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    More about this item

    Keywords

    Subcontracting; Networks; Industrial development; Regional development; Sous-traitance; Reseaux; Developpement industriel; Amenagement du territoire; Vertragliche Weitergabe; Netzwerke; industrielle Entwicklung; Regionalentwicklung; Subcontratacion; Redes; Desarrollo industrial; Desarrollo regional; JEL classifications: L6; L24; R11; R12;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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