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

Date

2005-07-01

Author

Taymaz, Erol

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Recent studies on small- and medium-sized Turkish textile and engineering industries, development 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.

Subject Keywords

Subcontracting, Networks, Industrial development, Regional development

URI

https://hdl.handle.net/11511/34715

Journal

REGIONAL STUDIES

DOI

https://doi.org/10.1080/00343400600151913

Collections

Department of Economics, Article

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Citation Formats

E. Taymaz, “Determinants of subcontracting and kegional development: An empirical study on Turkish textile and engineering industries,” REGIONAL STUDIES, pp. 633–645, 2005, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/34715.