Structure and role of subcontracting in the informal small-scale manufacturing sector : a study of the garment and fabricated metal industries in Seoul, Korea

Author: Tae-ho Kwon

AIT Library Call Number: AIT Diss no. HS-94-01

Year: 1994

Academic Program: Human Settlement (HS)

Type: Thesis (Ph.D.) – Asian Institute of Technology, 1994

Examination Committee: A.T.M. Nurul Amin (Chairperson); Karl E. Weber, Jayant Kumar Routray, Ram M. Shrestha, Nagamine Haruo (Examination Committee Members)

Abstract: Over last two decades’ research of the urban informal sector(UIS) has led to the recognition of its role in providing income and employment opportunities to about 40-65 percent of urban working labor of developing countries. However, when the issue is the growth potential of the sector, it is not good enough to simply contend that the sector has a promising future because of its current contribution to income and employment. Though inf01mal-formal sector subcontracting linkage has been seen as a possible contiibutor for the evolutionary growth and expansion of the sector, the empirical knowledge and insight on the linkage are far from sufficient to reach an agreement upon which efficient planning policies could be drawn. Largely due to individual researcher’s intellectual inclination, informal sector subcontracting studies have not been conducted in a very objective way. This is reflected in the preoccupation of one set of studies with the theory of capital accumulation and another set’s with that of positive aspects of subcontracting. Furthe1more, most of the existing studies tended to cover a few aspects of the linkage, and thus failed to provide a comprehensive picture on the mechanism and the impact of the linkage. With this in view, this study aims to explore and assess the structure and role of subcontracting linkage with a case study of the ga1ment and the fabricated metal industry in Seoul, Korea. In order to examine nature of the subcontracting relationship, terms and conditions of the transaction were analyzed. Here, a pa1ticular emphasis was placed on the significance of the contractors’ subcontracting motivation, subcontracting market structure, and subcontracting stability as factors influencing the nature of informal small-scale subcontracting. It is seen that the metal subcontractors, overall, are in a better position in negotiating terms and conditions of the transaction with contractors than the garment subcontractors. A comparative analysis of the working process, the rela

Scholarship Donor(s): Government of Japan

Note: A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy, School of Engineering and Technology

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