LATEST PUBLICATIONS
SEARCA MGB 2021 2
Seed Guidebook: Scaling and Expanding for Effective Development the Experiences and Learning from the SEARCA Project ISARD
SEARCA RPCL 2021 6
Microbes for Sustainable Agriculture: Isolation and Identification of Beneficial Soil- and Plant-Associated Microorganisms
SEARCA MONO 2021 2
Application of Remote Sensing and SWAT Model to Assess Climate and Land Use Changes Impacts on Hydrological Responses and Sediment Yield
SEARCA MONO 2021 1
The Learning Organization: Group Dynamics, Institutional Linkages Toward Technology Adoption, Value-Adding Innovation, and Sustainability

LATEST AV MATERIALS
PIDS WB 2021-0903
Annual Public Policy Conference Webinar 2: Ethical Business
PIDS WB 2021-0902
Opening Program and Annual Public Policy Conference Webinar 1: Resetting Capitalism
PIDS WB 2021-0901
19th Development Policy Research Month Kick-Off Forum
PIDS WB 2021-0702
Local Governments' PDP and SDG Localization Efforts as Contribution to National Development
Publication Detail
UPSE PRE 2002-39_1-05: Interlinked Credit Relational Contracting and the Spread of Rural-Based Manufacturing: The Case of Garment and Metalcraft Industries in the Philippines

Subcontracting arrangements based on relational contracting between urban traders and rural-based manufacturers provide an important means for spreading manufacturing in rural areas. Within these arrangements, the payment of advances is a form of credit interlinking that addresses the isolation of rural-based enterprises from the formal finance sector. This viewpoint motivates specification of a testable hypothesis: advance payments are greater the more remote a rural-based subcontractor is from the urban center. The paper shows that such a hypothesis can be derived from a simple principal-agent model of the subcontracting relation. Moreover, the hypothesis is empirically confirmed by multivariate analysis of data from a case study of garment and metalcraft industries in the Philippines. The finding supports the view that subcontracting arrangements may be an organizational form appropriate to rural industrialization.

UP-School of Economics
Authors Keywords
Briones, Roehlano M.; rural development;
Download PDF Number of Downloads
Published in 2002 and available in the UPSE library or NO PDF AVAILABLE Downloaded 0 times since November 25, 2011
×
Please let us know your reason for downloading this publication. May we also ask you to provide additional information that will help us serve you better? Rest assured that your answers will not be shared with any outside parties. It will take you only two minutes to complete the survey. Thank you.


To use as reference:
If others, (Please specify):
Name: (optional)
Email: (required, but will not display)
Age:
Gender:
If Prefer to self-describe, please specify:
Level of Education:
Occupation:
If employed either part-time or full-time, name of office:
If others, (Please specify):
Would you like to receive the SERP-P UPDATES e-newsletter? Yes No
Use the space below if you have any comment about this publication or SERP-P knowledge resources in general.