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(DP 1980-06) A Theory of Ancillary Firm Development

UPSE Discussion Papers

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Title (DP 1980-06) A Theory of Ancillary Firm Development
 
Creator Odaka, Konosuke
 
Description The recent decades have observed a new surge of invest in an important role for small- and medium-sized firms to play in economic development. They not only offer greater employment opportunities but can also be a potential source of indigenous industrialization. The present paper argues that machinery industry is an excellent basis for such development, because its engineering properties can lead to vertically disintegrated industrial organization, where a multitude of dependent firms are specialized in the production of interchangeable parts and components. The paper attempts to assess major factors that may lead to the growth of such "ancillary firms", in particular the relative size of the product market as compared with the extent of scale economies. In the same vein, pertinent factors for determining the make-or-buy decisions by assembly firms are discussed and evaluated.
 
Publisher UPSE Discussion Papers
 
Contributor
 
Date 2010-08-31
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/352
 
Source UPSE Discussion Papers; 1980
 
Language eng
 
Relation http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/352/409