Giunta, Anna and Nifo, Annamaria and Scalera, Domenico (2009): Subcontracting in the Italian industry. Labour Division, Firms’ Growth and North-South Divide.
Download (163kB) | Preview
By making use of a 4000 firms database, this paper analyzes the dynamics of division of labour among Italian manufacturing firms during the '90s, and seeks to assess the impact that subcontracting has on manufacturing firms' growth. In particular, we investigate the relationship between labour division and firms' growth with three specific objectives: a) to understand whether and how subcontracting may have affected firms' growth dynamics; b) to test if larger growth could be due to stronger incentives to innovate for subcontracting firms and c) to study the joint influence of subcontracting and location in Southern Italy on growth. 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, Firms’ Growth and 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:||31. Jan 2009 08:55|
|Last Modified:||13. Feb 2013 12:21|
Amighini A. and Rabellotti R.. (2003), “The effect of globalisation on industrial districts in Italy: evidence from the footwear sector”, Working Papers 64, SEMEQ Department, Faculty of Economics, University of Eastern Piedmont.
Audretsch D.B., Klomp L. and Thurik A.R. (1997), “Do Services Differ from Manufacturing? The Post-Entry Performance of Firms in Dutch Services?”, Centre for Economic Policy Research, Discussion Paper, 1718.
Audretsch D.B., Klomp L. and Thurik A.R. (1999), “Innovation, Industry Evolution and Employment”, Nordic Labour Market Research on Register Data, Cambridge University Press, 230-252.
Bergin P.R., Feenstra R.C. and Hanson G.H. (2007), “Outsourcing and volatility”, NBER Working Paper W13144.
Capitalia (1998), VII Indagine sulle imprese manifatturiere, Roma.
Capitalia (2001), VIII Indagine sulle imprese manifatturiere, Roma.
Coase R. H. (1937), “The Nature of the Firm”, Economica, 4, 386-405.
Contini B. and Revelli R., (1989), “The relationship between firm growth and labour demand”, Small Business Economics, 1, 309-314.
Corò G. and Grandinetti R. (1999), “Strategie di delocalizzazione e processi evolutivi nei distretti italiani”, L’Industria, 4, 897-924.
Daveri F. and Jona-Lasinio C. (2007), “Off-shoring and productivity growth in the Italian manufacturing industries”, LLEE Working Document 53.
De Arcangelis G. and Ferri G. (2005), “La specializzazione dei distretti: dai beni finali ai macchinari del made in Italy?”, in M. Omiccioli e L.F. Signorini (eds.), Sistemi locali e competizione globale, Bologna, Il Mulino.
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, 1003-1014.
De Propris L., Menghinello S. and Sugden R. (2008), “The internationalisation of production systems: embeddedness, openness and governance”, Entrepreneurship and Regional Development, 20, 493-515.
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(9), 1525-1544.
Dunne P. and Hughes A. (1994), “Age, size, growth and survival: UK companies in the 1980’s”, Journal of Industrial Economics, 42, 115-140.
Evans D.S. (1987a), “The relationship between firm, growth, size and age: estimates for 100 manifacturing industries”, The Journal of Industrial Economics, 43, 115-140.
Evans D.S. (1987b), “Tests of alternative theories of firm growth”, Journal of Political Economy, 95, 657-674.
Feenstra R. and Hanson G. (2001), “Global production sharing and rising inequality: a survey of trade and wages”, NBER Working Papers 8372.
Gereffi G. (1994), “The organization of buyer-driven commodity chains: How US retailers shape overseas production networks”, in Gereffi G. and M. Korzeniewicz (eds.), 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 (1), 37-70.
Geroski P.A. (1998), “An applied econometrician’s view of large company performance”, Review of Industrial Organization, 13, 271-293.
Gibrat R. (1931), Les inegalites economiques, Sirey, Paris.
Giunta A. and Scalera D. (2006), “Le relazioni verticali tra le imprese in Italia. Uno studio sull’evoluzione degli anni ‘90” in A. Giannola (ed.) Riforme istituzionali e mutamento strutturale in un sistema dualistico, Roma, Carocci Editore.
Giunta A. and Scalera D. (2007), “L’impresa subfornitrice: redditività, produttività e divari territoriali”, Economia e Politica Industriale, 3.
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, 453-488.
Hart P. (2000), “Theories of firms’ growth and the generation of jobs”, Review of Industrial Organization, 17, 229-248.
Heintz J. (2006), “Low-wage manufacturing and global commodity chains: A model in the unequal exchange tradition”, Cambridge Journal of Economics, 30 (4), 507-520.
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 (3), 436-464.
Hermes Lab (2004), La domanda di subfornitura e le politiche di approvvigionamento delle medie e grandi aziende italiane dell’abbigliamento, Roma.
Holmström B. and Roberts J. (1998), “The boundaries of the firm revisited”, Journal of Economic Perspectives, 12 (4), 73-94.
Hummels D., Ishii J. and Yi K.M. (2001), “The nature and growth of vertical specialization in Europe in world trade”, Journal of International Economics, 54 (1), 57-96.
Humphrey J. and Schmitz H. (2002) “How does insertion in global value chains affect upgrading in industrial clusters?”, Regional Studies 36, 1017-1027.
Innocenti A. (2003) “Production outsourcing in Italian manufacturing industry”, in M. Di Matteo and P. Piacentini (eds.), The Italian economy at the dawn of the 21st century, Ashgate.
Jovanovic B. (1982), “Selection and the industry evolution”, Econometrica, 50, 649-670.
Kaplinsky R. (2000), Spreading the gains from globalisation: What can be learned from Value Chain Analysis?, Institute for Development Studies, Sussex University, Brighton.
MacPherson M.A. (1996), “Growth of micro and small enterprises in Southern Africa”, Journal of Development Economics, 48, 253-277.
Mansfield E. (1962), “Entry, Gibrat's law, innovation, and the growth of firms”, American Economic Review, 52, 1023-51.
Mariotti S., Mutinelli M. and Piscitello L. (2008) “The internationalization of production by Italian industrial districts' firms: structural and behavioural determinants”, Regional Studies, 42, 719-35
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 (5), 1239-1254.
Newey W. and West K., (1987), “Hypothesis testing with efficient method of moments estimation”, International Economic Review, 28, 777-787.
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.
Powell W.W., Koput K., Smith-Doerr L. and Owen-Smith J. (1999), “Network position and firm performance: Organizational returns to collaboration in the biotechnology industry”, in S. Andrews and D. Knoke (eds.), Research in the sociology of organizations, JAI Press.
Riccaboni M. and Pammolli F. (2002), “On firm growth in networks”, Research Policy, 31, 1405-1416.
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 (5), 669-691.
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.
Unioncamere (2006), Rapporto Unioncamere, Roma.
Variyam J.N. and Kraybill D.S. (1992), “Empirical evidence on determinants of firm growth”, Economics Letters, 38, 31-36.
Yasuda T. (2005), “Firm growth, size, age and behavior in Japanese manufacturing”, Small Business Economics, 24 (1), 1-15.
Zivot E. and Wang J. (2006), Modelling financial time series with s-plus, Second edition, Springer Verlag.
Available Versions of this Item
- Subcontracting in the Italian industry. Labour Division, Firms’ Growth and North-South Divide. (deposited 31. Jan 2009 08:55) [Currently Displayed]