[V.R.F. Series no.468]
(March 2011)

Abstract
In this paper, I raise the question of whether SMEs can benefit from “learning-by-subcontracting” or they “self-selecting” to work as a subcontractor because they have the ability to do so and can derive more income from subcontracting than from other work. Using firm-level survey data, I analyze the causal links between subcontracting and productivity. I confirm that the “learning-by-subcontracting” effect exists in Kunshan, China. Subcontractors perform better in terms of technological progress than non-subcontractors. Furthermore, we find that subcontractors can not only benefit from productivity growth but also from improved latent technological progress.

[관련자료]
학술보고서 : Multinational Corporations, FDI and the East Asian Economic Integration

학술보고서 : China's Foreign Trade in the Perspective of a More Balanced Economic Growth