Giunta, Anna and Nifo, Annamaria and Scalera, Domenico (2009): Subcontracting in the Italian industry. Labour Division, Firm Growth and the North-South Divide.
This is the latest version of this item.
Download (182kB) | Preview
The aim of this paper is to investigate the impact of subcontracting on Italian manufacturing firms’ growth in the second half of the 1990s. By making use of a 5000 firms database we specifically test: a) whether and how subcontracting may affect the growth dynamics of firms; b) whether growth could be due to stronger incentives to innovate for subcontracting firms keen to move up the value chain, which would be consistent with the predictions of the Global Value Chain approach; and c) the joint influence of subcontracting and location on growth, that is whether the growth dynamics of Southern subcontractors is significantly different from those of North and Centre subcontracting firms. The main results are that i) the propensity to carry out subcontracting activities is relevant for growth, especially when allowing for a nonlinear relationship between growth and subcontracting; ii) more innovative subcontracting firms are also more susceptible to grow and iii) the deep dualism of the Italian industrial structure is once again confirmed, as Southern subcontractors show poorer performances and slower growth.
|Item Type:||MPRA Paper|
|Original Title:||Subcontracting in the Italian industry. Labour Division, Firm Growth and the North-South Divide|
|Keywords:||subcontracting; growth; location|
|Subjects:||D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior; Transaction Costs; Property Rights
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L23 - Organization of Production
|Depositing User:||Domenico Scalera|
|Date Deposited:||17. Feb 2010 12:59|
|Last Modified:||13. Feb 2013 19:54|
AMIGHINI A. and RABELLOTTI R. (2003) The effect of globalisation on industrial districts in Italy: evidence from the footwear sector, Working Paper 64, SEMEQ Department, University of Eastern Piedmont.
AMITI, M. and WEI S. J. (2006) Service offshoring and productivity: evidence from the United States, NBER Working Paper 11926.
ANTRAS P. (2003) Firms, contracts, and trade structure, The Quarterly Journal of Economics 118, 1375-418.
ANTRAS P. and HELPMAN E. (2008) Contractual frictions and global sourcing, in HELPMAN E., MARIN D. and VERDIER T. (Eds) The Organization of Firms in a Global Economy, pp. 9-54. Harvard University Press.
AUDRETSCH D. B., KLOMP L. and THURIK A. R. (1997) Do services differ from manufacturing? The post-entry performance of firms in Dutch services, Discussion Paper, No. 1718, Centre for Economic Policy Research.
AUDRETSCH D. B., KLOMP L. and THURIK A. R. (1999) Innovation, industry evolution and employment, Nordic Labour Market Research on Register Data, pp. 230-252. Cambridge University Press.
BAIR J. and GEREFFI G. (2001) Local clusters in global chains: The causes and consequences of export dynamism in Torreon’s blue jeans industry, World Development 29,1885–903.
BAZAN L. and NAVAS-ALEMAN L. (2004) The underground revolution in the Sinos Valley: A comparison of upgrading in global and national value chain, in SCHMITZ H. (Ed) Local Enterprises in the Global Economy: Issues of Governance and Upgrading, pp. 110-39. Edward Elgar, Cheltenham.
BECATTINI G. (1978) The development of light industry in Tuscany, Economic Notes 18, 107-23.
BECATTINI G. (1979) Dal settore industriale al distretto industriale. Alcune considerazioni sull’unità di indagine dell’economia industriale, Rivista di economia e politica industriale 5, 7-21.
BECATTINI G., BELLANDI M. and DE PROPRIS L. (2009) A Handbook of Industrial Districts. Edward Elgar, Cheltenham.
BORGA M. and ZEILE W. J. (2004) International fragmentation of production and the intrafirm trade of U.S. multinational companies, Working Paper No. 2004-02, U.S. Department of Commerce, Bureau of Economic Analysis.
BRESNAHAN T. F., BRYNJOLFSSON E. AND HITT, M. L. (2002) Information technology, workplace organisation, and the demand of skilled labor: firm-level evidence, Quarterly Journal of Economics 117, 339-76.
BRUSCO S., CAINELLI G., FORNI F., FRANCHI M., MALUSARDI A., and RIGHETTI R. (1997) L’evoluzione dei sistemi produttivi locali in Emilia-Romagna, in COSENTINO F., PYKE F. and SENGENBERGER W. (Eds) Le risposte locali e regionali alla pressione globale: il caso dell'Italia e dei suoi distretti industriali, pp.35-60. Il Mulino, Bologna.
BRYNJOLFSSON E. and HITT M. L. (2000) Beyond computation: information technology, organization transformation and business performance, Journal of Economic Perspectives 14, 23-48.
BUGAMELLI M. and PAGANO P. (2004) Barriers to investment in ICT, Applied Economics 36, 2275-86.
CAMUFFO A., FURLAN A. and GRANDINETTI R. (2007) Knowledge and capabilities in subcontractor’s evolution: the Italian case, in SUSMAN G. I. (Ed) Small and Medium-sized Enterprises and the Global Economy, pp.125-39. Edward Elgar, Cheltenham.
CAPITALIA (1998) VII Indagine sulle imprese manifatturiere, Roma.
CAPITALIA (2001) VIII Indagine sulle imprese manifatturiere, Roma.
CONTINI B. and REVELLI R. (1989) The relationship between firm growth and labour demand, Small Business Economics 1, 309-14.
CORÒ G. and GRANDINETTI R. (1999) Strategie di delocalizzazione e processi evolutivi nei distretti italiani, L’Industria 4, 897-924.
COSTA S. and FERRI G. (2007) The determinants and employment effects of international outsourcing: the case of Italy, Dipartimento di Scienze Economiche Series No. 16, Università di Bari.
DAVERI F. and JONA-LASINIO C. (2007) Off-shoring and productivity growth in the Italian manufacturing industries, LLEE Working Document No. 53.
DE ARCANGELIS G. and FERRI G. (2005) La specializzazione dei distretti: dai beni finali ai macchinari del made in Italy?, in OMICCIOLI M. AND SIGNORINI L. F. (Eds) Economie Locali e Competizione Globale, pp.232-54. Il Mulino, Bologna.
DEL MONTE A. and PAPAGNI E. (2003) R&D and the growth of firms: empirical analysis of a panel of Italian firms, Research Policy 32, 1003-14.
DOLAN C. and HUMPHREY J. (2000) Changing governance patterns in the trade in fresh vegetables between Africa and the United Kingdom, Environment and Planning A 36, 491-509.
DRIES L. and SWINNEN J. F. M. (2004) Foreign direct investment, vertical integration, and local suppliers: Evidence from the Polish dairy sector, World Development 32, 1525-44.
DUNNE P. and HUGHES A. (1994) Age, size, growth and survival: UK companies in the 1980’s, Journal of Industrial Economics 42, 115-40.
DUNNING J. H. (1993) Multinational Enterprises and the Global Economy. Addison Wesley, Wokingham.
DUNNING J. H. (2001) The eclectic (OLI) paradigm of international production: Past, present and future, International Journal of the Economics of Business 8, 173-90.
EVANS D. S. (1987a) The relationship between firm, growth, size and age: estimates for 100 manifacturing industries, Journal of Industrial Economics 43, 115-40.
EVANS D. S. (1987b) Tests of alternative theories of firm growth, Journal of Political Economy, 95, 657-74.
FALK M. (2002) Endogenous organizational change and the expected demand for different skill groups, Applied Economics Letters 9, 419-23.
FALZONI A. M. and TAJOLI L. (2008) Offshoring and the skill composition of employment in the Italian manufacturing industries CESPRI Working Paper No. 219.
GEREFFI G. (1994) The organization of buyer-driven commodity chains: How US retailers shape overseas production networks, in GEREFFI G. and KORZENIEWICZ M. (Eds) Commodity Chains and Global Capitalism, pp.95-122. Greenwood Press, Westport.
GEREFFI G. and KORZENIEWICZ M. (1994) Commodity Chains and Global Capitalism. Greenwood Press, Westport.
GEREFFI G. (1999) International trade and industrial upgrading in the apparel commodity chain, Journal of International Economics 48, 37-70.
GEREFFI G., HUMPHREY J. and STURGEON T. (2005) The governance of global value chains, Review of International Political Economy 12, 78-104.
GEROSKI P. A. (1998) An applied econometrician’s view of large company performance, Review of Industrial Organization 13, 271-93.
GEROSKI P. A., MACHIN S. and WALTERS C. F. (1997) Corporate growth and profitability, Journal of Industrial Economics 46, 171-89.
GIANNOLA A. and SCALERA D. (1998) Il Mezzogiorno alla vigilia dell’Unione Monetaria: aspetti del dualismo Nord-Sud e prospettive dell’integrazione europea, Rivista Internazionale di Scienze Sociali 106, 299-326.
GIULIANI E., PIETROBELLI C., and RABELLOTTI R. (2005) Upgrading in global value chains: Lessons from Latin American clusters, World Development 33, 549-73
GIUNTA A. and SCALERA D. (2007) L’impresa subfornitrice: redditività, produttività e divari territoriali, Economia e Politica Industriale, 34, 123-46.
GÖRG H., HANLEY A. and STROBL E. (2008) Productivity effects of international outsourcing: evidence from plant-level data, Canadian Journal of Economics 41, 670-88.
GUERRIERI P. and IAMMARINO S. (2001) Vulnerable regions in Europe: The case of Italian Mezzogiorno, Paper presented at the 41st ERSA Congress, Zagreb.
HANSON G. H., MATALONI R. J. JR. and SLAUGHTER M. J. (2003) Vertical production networks in multinational firms, NBER Working Paper W9723.
HARHOFF D., KONRAD S. and WOYWODE M. (1998) Legal form, growth and exit of West German firms. Empirical results for manufacturing, construction, trade and service industries, Journal of Industrial Economics 46, 453-88.
HART P. (2000) Theories of firms’ growth and the generation of jobs, Review of Industrial Organization 17, 229-48.
HAVIK K. and MC MORROW K. (2006) Global trade integration and outsourcing: How well is the EU coping with the new challenges?, European Commission Directorate-General for Economic and Financial Affairs Economic Papers 259.
HEGGER H. and KREICKEMEIER U. (2008) International fragmentation: Boon or bane for domestic employment?, European Economic Review 52, 116-32.
HENDERSON J., DICKEN P., HESS M., COE N. and YEUNG H. (2002) Global production networks and the analysis of economic development, Review of International Political Economy 9, 436-64.
HUMPHREY J. and SCHMITZ H. (2002) How does insertion in global value chains affect upgrading in industrial clusters?, Regional Studies 36, 1017-27.
HUMPHREY J. and MEMEDOVIC O. (2003) The global automotive industry value chain: What prospects for upgrading by developing countries, UNIDO Sectoral Studies Series, Vienna.
HUR J. J., SEO H. J. and LEE Y. (2005) Information and communication technology diffusion and skill upgrading in Korean industries, Economics of Innovation and New Technology 14, 553-71.
IETTO-GILLIES G. (2002) Hymer, the nation-state and the determinants of multinational corporations’ activities, Contributions to Political Economy 21, 43-54.
INNOCENTI A. (2003) Production outsourcing in Italian manufacturing industry, in DI MATTEO M. and PIACENTINI P. (Eds) The Italian Economy at the Dawn of the 21st Century, pp. 212-32. Ashgate, Aldershot.
JONES R. W. and KIERZKOWSKI H. (1990) The role of services in production and international trade: a theoretical framework, in JONES R. W. and KRUEGER A. O. (Eds) The Political Economy of International Trade. Essays in Honor of Robert E. Baldwin, pp. 31-48. Basil Blackwell, Cambridge.
JOVANOVIC B. (1982) Selection and the industry evolution, Econometrica 50, 649-70.
KAPLINSKY R. (2000) Spreading the gains from globalisation: What can be learned from Value Chain Analysis?, Institute for Development Studies, Sussex University, Brighton.
KIMURA F. (2002) Subcontracting and the performance of small and medium firms in Japan, Small Business Economics 18, 163-75.
KOHLER W. (2009) Offshoring: Why do stories differ?, in G. TONDL (ed) The EU and Emerging Markets, pp. 25-49. Springer Verlag, Wien.
LOOF H. and HESHMATT A. (2006) On the relationship between innovation and performance: a sensitivity analysis, Economics of Innovation and New Technologies 15, 317-44.
MACPHERSON M. A. (1996) Growth of micro and small enterprises in Southern Africa, Journal of Development Economics 48, 253-77.
LUCCHETTI R. and STERLACCHINI A. (2004) The adoption of ICT among SMEs: evidence from an Italian survey, Small Business Economics 23, 151-68.
MANSFIELD E. (1962) Entry, Gibrat’s law, innovation, and the growth of firms, American Economic Review 52, 1023-51.
MARIN D. (2006) A new international division of labor in Europe: Outsourcing and offshoring to Eastern Europe, Journal of the European Economic Association 4, 612-22.
MAZZOLA F. and BRUNI S. (2000) The role of linkages in firm performance: evidence from Southern Italy, Journal of Economic Behaviour and Organization 43, 199-221.
MCLAREN J. (2000) Globalization and vertical structure, American Economic Review 90, 1239-54.
MENGHINELLO S. (2004) Local engines of global trade: the case of Italian industrial districts, in CAINELLI G. and ZOBOLI R. (Eds) The Evolution of Industrial Districts, pp. 319-35. Physica-Verlag, New York.
MILGROM P. and ROBERTS J. (1990) The economics of modern manufacturing: technology, strategy and organization, American Economic Review 80, 511-28.
NEWEY W. and WEST K. (1987) Hypothesis testing with efficient method of moments estimation, International Economic Review 28, 777-87.
NORDÅS H. K. (2004) Location of engineering and designer services in the space economy, in DE GROOT H. L. F., NIJKAMP P. and STOUGH R. (Eds) Rising Entrepreneurship in a Shrinking World: A Spatial Perspective. pp. 271-291. Edward Elgar, Cheltenham.
NORDÅS H. K (2005) International production sharing: a case for a coherent policy framework, Discussion Paper No. 11, World Trade Organization, Geneva.
OECD (2007) Offshoring and Employment. Trends and Impacts. Paris.
OLIVEIRA B. and FORTUNATO A. (2006) Testing Gibrat’s law: Empirical evidence from a panel of Portoguese manufacturing firms, International Journal of the Economics of Business 13, 65-81.
OLSEN K. B. (2006) Productivity impacts of offshoring and outsourcing: A review, STI Working Paper No. 1, OECD, Paris.
RAZZOLINI T. and VANNONI D. (2008) Export premia and sub-contracting discount. Passive strategies and performance in domestic and foreign markets, Development Working Papers No. 237, Centro Studi Luca d’Agliano, University of Milano.
ROSSI S. (2006) La Regina e il Cavallo. Laterza, Bari.
RULLANI E. (1997) L’evoluzione dei distretti industriali: un percorso tra decostruzione e internazionalizzazione, in VARALDO R. and FERRUCCI L. (Eds) Il Distretto Industriale tra Logiche di Impresa e Logiche di Sistema, pp. 54-85. Franco Angeli, Milano.
SACCHETTI S. and SUGDEN R. (2003) The Governance of networks and economic power: The nature and impact of subcontracting relationships, Journal of Economic Surveys 17, 669-91.
SALIOLA F. and ZANFEI A. (2009) Multinational firms, global value chains and the organization of knowledge transfer, Research Policy 38, 369-81.
SFORZI F. (2002) The industrial district and the ‘new’ Italian economic geography, European Planning Studies 10, 439-47.
STURGEON T., VAN BIESEBROECK J. and GEREFFI G. (2008) Value chains, networks and clusters: reframing the global automotive industry, Journal of Economic Geography 8, 297-321.
SUTTON J. (1997) Gibrat’s legacy, Journal of Economic Literature 35, 40-59.
TATTARA G., CORÒ G. and VOLPE M. (2006) La Delocalizzazione Internazionale come Strategia Competitiva. Carocci, Roma.
TRENTO S. and WARGLIEN M. (2003) Tecnologie digitali e cambiamento organizzativo, in S. ROSSI (Ed) La Nuova Economia, pp. 151-176. Il Mulino, Bologna.
UNIONCAMERE (2006) Rapporto Unioncamere. Roma.
VARIYAM J. N. and KRAYBILL D.S. (1992) Empirical evidence on determinants of firm growth, Economics Letters 38, 31-6.
YASUDA T. (2005) Firm growth, size, age and behavior in Japanese manufacturing, Small Business Economics 24, 1-15.
ZIVOT E. and WANG J. (2006) Modelling Financial Time Series with S-plus. Second edition, Springer Verlag, Wien.
Available Versions of this Item
Subcontracting in the Italian industry. Labour Division, Firms’ Growth and North-South Divide. (deposited 31. Jan 2009 08:55)
- Subcontracting in the Italian industry. Labour Division, Firm Growth and the North-South Divide. (deposited 17. Feb 2010 12:59) [Currently Displayed]