Subcontracting and firm characteristics: Evidence from two new local industrial districts in Turkey

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Date

2016-8

Author

Şaraçoğlu, Dürdane Şirin
Kızılırmak, Burça

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This article examines the nature of subcontracting relations across firms in textile industry in Denizli and Gaziantep provinces which were considered among the new local industrial districts that emerged following the adoption of export-led growth strategies in Turkey during the 1990s. The empirical analysis in the article is based on a unique data set that the authors have constructed using face-to-face survey methods with firm representatives in these two regions. Results show that while in Gaziantep subcontracting relations are primarily motivated by elements of the traditional, dualistic nature of the economy, in Denizli these relationships are more complex and evolved, and involve networking and collective efficiency gains across firms.

Subject Keywords

Subcontracting, New industrial districts, Textile sector, Bivariate probit estimation, Turkey

URI

http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/864
https://hdl.handle.net/11511/58198

Journal

ODTÜ Gelişme Dergisi

Collections

Department of Economics, Article

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Citation Formats

D. Ş. Şaraçoğlu and B. Kızılırmak, “Subcontracting and firm characteristics: Evidence from two new local industrial districts in Turkey,” ODTÜ Gelişme Dergisi, vol. 43, no. 2, pp. 635–669, 2016, Accessed: 00, 2020. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/864.