Subcontracting, growth and capital accumulation in small‐scale firms in the textile industry in Turkey
Year: 1991
Type: article
Abstract: This study examines capital accumulation and growth among subcontracting small‐scale textile firms. We find that, in spite of the higher average profitability of non‐subcontracting production relative to subcontracting, the average annual rate of capacity expansion between the two groups is not statistically different from the former. This implies that the higher average productive capacity of the non‐subcontractors relative to that of the subcontracting firms are due to differences in their initial capacity. The study further suggests that there may be no easy transition from subcontracting to independent production. For many subcontractor firms in the sample, the cost of inputs required for independent production exceeds the current value of their gross earnings by a multiple.
Authors: Gunar Evcimen, Mehmet Kaytaz, E. Miné Cinar
Institutions: Boğaziçi University, Loyola University Chicago
Language: English
Topic: Firm Innovation and Growth
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2031036801