IDEAS home Printed from https://ideas.repec.org/p/bwp/bwppap/ctg-2010-04.html
   My bibliography  Save this paper

Economic and Social Upgrading in Global Production Networks: Problems of Theory and Measurement

Author

Listed:
  • William Milberg
  • Deborah Winkler

Abstract

The massive globalization of production led by large firms in industrialized countries, combined with the policy shift in developing countries toward export-oriented growth, has meant that economic development has increasingly become synonymous with “economic upgrading” within global production networks (GPNs), that is, moving into higher productivity and higher value-added aspects of production and export. There is much research on economic upgrading in global production networks, connecting economic growth and economic upgrading to international trade performance. There has been less analysis of what such upgrading means for living standards, including wages, work conditions, economic rights, gender equality and economic security. In this paper, we refer to improvements in these aspects of economic and social life as “social upgrading”. This paper reviews the ways in which economic and social upgrading in GPNs are measured. In this paper we focus mainly on developing countries. In the process we also scrutinize the theoretical connection between these two dimensions of upgrading within GPNs.

Suggested Citation

  • William Milberg & Deborah Winkler, 2012. "Economic and Social Upgrading in Global Production Networks: Problems of Theory and Measurement," Global Development Institute Working Paper Series ctg-2010-04, GDI, The University of Manchester.
    • Handle: RePEc:bwp:bwppap:ctg-2010-04
    as

    Download full text from publisher

    File URL: http://www.capturingthegains.org/pdf/ctg-wp-2010-04.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Michael Engman & Osamu Onodera & Enrico Pinali, 2007. "Export Processing Zones: Past and Future Role in Trade and Development," OECD Trade Policy Papers 53, OECD Publishing.
    2. Gunseli Berik, 2000. "Mature Export-Led Growth and Gender Wage Inequality in Taiwan," Feminist Economics, Taylor & Francis Journals, vol. 6(3), pages 1-26.
    3. Bancalari, Antonella & Berlinski, Samuel & Buitrago, Giancarlo & García, María Fernanda & Mata, Dolores de la & Vera-Hernández, Marcos, 2023. "Health Inequalities in Latin American and the Caribbean: Child, Adolescent, Reproductive, Metabolic Syndrome and Mental Health," IDB Publications (Working Papers) 13158, Inter-American Development Bank.
    4. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    5. Alan S. Blinder, 2009. "How Many US Jobs Might be Offshorable?," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 10(2), pages 41-78, April.
    6. repec:ilo:ilowps:369300 is not listed on IDEAS
    7. Janet Ceglowski & Stephen Golub, 2007. "Just How Low are China's Labour Costs?," The World Economy, Wiley Blackwell, vol. 30(4), pages 597-617, April.
    8. Kucera, David, & Sarn, Ritash., 2004. "How do trade union rights affect trade competitiveness?," ILO Working Papers 993693003402676, International Labour Organization.
    9. Cling, Jean-Pierre & Razafindrakoto, Mireille & Roubaud, Francois, 2005. "Export processing zones in Madagascar: a success story under threat?," World Development, Elsevier, vol. 33(5), pages 785-803, May.
    10. Standing, Guy, 1999. "Global Feminization Through Flexible Labor: A Theme Revisited," World Development, Elsevier, vol. 27(3), pages 583-602, March.
    11. Ute Pieper, 2000. "Deindustrialisation and the social and economic sustainability nexus in developing countries: Cross-country evidence on productivity and employment," Journal of Development Studies, Taylor & Francis Journals, vol. 36(4), pages 66-99.
    12. C. Dolan & J. Humphrey, 2000. "Governance and Trade in Fresh Vegetables: The Impact of UK Supermarkets on the African Horticulture Industry," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 147-176.
    13. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    14. Arslan Razmi & Robert Blecker, 2008. "Developing Country Exports of Manufactures: Moving Up the Ladder to Escape the Fallacy of Composition?," Journal of Development Studies, Taylor & Francis Journals, vol. 44(1), pages 21-48.
    15. Stephen Rose, 2005. "REVIEW: Fighting Unemployment: The Limits of Free Market Orthodoxy," Challenge, Taylor & Francis Journals, vol. 48(5), pages 113-119.
    16. Artola, Ner & Zepeda, Eduardo & Rabellotti, Roberta & Gomes, Raquel & Amighini, Alessia & Maggi Campos, Claudio & Villaschi Filho, Arlindo & Pietrobelli, Carlo & Cassiolato, José Eduardo & Parrilli, M, 2006. "Upgrading to Compete: Global Value Chains, Clusters, and SMEs in Latin America," IDB Publications (Books), Inter-American Development Bank, number 247.
    17. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    18. Humphrey, John,, 2004. "Upgrading in global value chains," ILO Working Papers 993698523402676, International Labour Organization.
    19. Standing, Guy, 1989. "Global feminization through flexible labor," World Development, Elsevier, vol. 17(7), pages 1077-1095, July.
    20. Matthias Busse & Christian Spielmann, 2006. "Gender Inequality and Trade," Review of International Economics, Wiley Blackwell, vol. 14(3), pages 362-379, August.
    21. Jörg Mayer, 2002. "The Fallacy of Composition: A Review of the Literature," The World Economy, Wiley Blackwell, vol. 25(6), pages 875-894, June.
    22. Culem, Claudy G., 1988. "The locational determinants of direct investments among industrialized countries," European Economic Review, Elsevier, vol. 32(4), pages 885-904, April.
    23. Aradhna Aggarwal, 2005. "Performance of export processing zones: a comparative analysis of India, Sri Lanka and Bangladesh," Indian Council for Research on International Economic Relations, New Delhi Working Papers 155, Indian Council for Research on International Economic Relations, New Delhi, India.
    24. Seguino, Stephanie, 2000. "Gender Inequality and Economic Growth: A Cross-Country Analysis," World Development, Elsevier, vol. 28(7), pages 1211-1230, July.
    25. Ner Artola & Eduardo Zepeda & Roberta Rabellotti & Raquel Gomes & Alessia Amighini & Claudio Maggi Campos & Arlindo Villaschi Filho & Carlo Pietrobelli & José Eduardo Cassiolato & Mario Davide Parrill, 2006. "Upgrading to Compete: Global Value Chains, Clusters, and SMEs in Latin America," IDB Publications (Books), Inter-American Development Bank, number 13158 edited by Roberta Rabellotti & Carlo Pietrobelli, February.
    26. Mehran, Farhad, & Chernyshev, Igor. & Egger, Philippe. & Ritter, Joseph. & Anker, Richard, & Mehran, Farhad,, 2002. "Measuring decent work with statistical indicators," ILO Working Papers 993622623402676, International Labour Organization.
    27. repec:ilo:ilowps:369852 is not listed on IDEAS
    28. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    29. Ann Harrison, 2022. "Has Globalization Eroded Labor’s Share? Some Cross-Country Evidence," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 5, pages 89-135, World Scientific Publishing Co. Pte. Ltd..
    30. William Milberg, 2007. "WP 2007-10 Exporting Processing Zones, Industrial Upgrading and Economic Development: A Survey," SCEPA working paper series. 2007-10, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    31. Günseli Berik & Yana van der Meulen Rodgers & Joseph E. Zveglich, 2004. "International Trade and Gender Wage Discrimination: Evidence from East Asia," Review of Development Economics, Wiley Blackwell, vol. 8(2), pages 237-254, May.
    32. Michael J. PIORE & Andrew SCHRANK, 2008. "Toward managed flexibility: The revival of labour inspection in the Latin world," International Labour Review, International Labour Organization, vol. 147(1), pages 1-23, March.
    33. repec:ilo:ilowps:370120 is not listed on IDEAS
    34. Flanagan, Robert J., 2006. "Globalization and Labor Conditions," OUP Catalogue, Oxford University Press, number 9780195306002.
    35. repec:ilo:esbook:ebook11 is not listed on IDEAS
    36. Kaplinsky, Raphael & Morris, Mike & Readman, Jeff, 2002. "The Globalization of Product Markets and Immiserizing Growth: Lessons From the South African Furniture Industry," World Development, Elsevier, vol. 30(7), pages 1159-1177, July.
    37. James Heintz, 2006. "Low-wage manufacturing and global commodity chains: a model in the unequal exchange tradition," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(4), pages 507-520, July.
    38. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
    39. Bair, Jennifer & Gereffi, Gary, 2001. "Local Clusters in Global Chains: The Causes and Consequences of Export Dynamism in Torreon's Blue Jeans Industry," World Development, Elsevier, vol. 29(11), pages 1885-1903, November.
    40. repec:ilo:ilowps:362262 is not listed on IDEAS
    41. Kaplinsky, Raphael, 1993. "Export Processing Zones in the Dominican Republic: Transforming manufactures into commodities," World Development, Elsevier, vol. 21(11), pages 1851-1865, November.
    42. J. S. L. McCombie & A. P. Thirlwall, 1994. "Economic Growth and the Balance-of-Payments Constraint," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-23121-8, December.
    43. William MILBERG, 2004. "The changing structure of trade linked to global production systems: What are the policy implications?," International Labour Review, International Labour Organization, vol. 143(1-2), pages 45-90, March.
    44. Dharam GHAI, 2003. "Decent work: Concept and indicators," International Labour Review, International Labour Organization, vol. 142(2), pages 113-145, June.
    45. José Gabriel Palma, 2006. "Globalizing Inequality: ‘Centrifugal’ and ‘Centripetal’ Forces at Work," Working Papers 35, United Nations, Department of Economics and Social Affairs.
    46. Milberg, William S.,, 2004. "The changing structure of international trade linked to global production systems : what are the policy implications?," ILO Working Papers 993701203402676, International Labour Organization.
    47. Raphael Kaplinsky & Jeff Readman, 2005. "Globalization and upgrading: what can (and cannot) be learnt from international trade statistics in the wood furniture sector?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(4), pages 679-703, August.
    48. Schmitz, Hubert, 1999. "Global Competition and Local Cooperation: Success and Failure in the Sinos Valley, Brazil," World Development, Elsevier, vol. 27(9), pages 1627-1650, September.
    49. William Milberg, Rudiger von Arnim, 2007. "WP 2006-3 U.S. Offshoring: Implications for Economic Growth and Income Distribution," SCEPA working paper series. 2006-3, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    50. Lee, Jaimin, 1995. "Comparative advantage in manufacturing as a determinant of industrialization: The Korean case," World Development, Elsevier, vol. 23(7), pages 1195-1214, July.
    51. repec:idb:brikps:34578 is not listed on IDEAS
    52. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shaianne T. Osterreich, 2019. "Gender and Comparative Advantage: Feminist–Heterodox Theorizing about Globalization," Economies, MDPI, vol. 7(2), pages 1-12, May.
    2. Marion Werner & Jennifer Bair & Victor Ramiro Fernández, 2014. "Linking Up to Development? Global Value Chains and the Making of a Post-Washington Consensus," Development and Change, International Institute of Social Studies, vol. 45(6), pages 1219-1247, November.
    3. repec:ilo:ilowps:369852 is not listed on IDEAS
    4. Maciej Grodzicki, 2018. "Prices of Value Added and Competitiveness in Global Value Chains," SPRU Working Paper Series 2018-14, SPRU - Science Policy Research Unit, University of Sussex Business School.
    5. Kucera, David & Tejani, Sheba, 2014. "Feminization, Defeminization, and Structural Change in Manufacturing," World Development, Elsevier, vol. 64(C), pages 569-582.
    6. William Milberg, 2007. "WP 2007-9 Shifting Sources and Uses of Profits: Sustaining U.S. Financialization with Global Value Chains," SCEPA working paper series. 2007-9, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    7. Anna Giunta & Domenico Scalera & Francesco Trivieri & Jeffrey B. Nugent & Mariarosaria Agostino, 2011. "Firm Productivity, Organizational Choice and Global Value Chain," Working Papers 2011R09, Orkestra - Basque Institute of Competitiveness.
    8. Dutta, Sourish, 2017. "Mechanics of Global Value chains: India’s Perspective," EconStor Preprints 235156, ZBW - Leibniz Information Centre for Economics.
    9. Navas-Alemán, Lizbeth, 2011. "The Impact of Operating in Multiple Value Chains for Upgrading: The Case of the Brazilian Furniture and Footwear Industries," World Development, Elsevier, vol. 39(8), pages 1386-1397, August.
    10. Yoruk, Deniz E., 2019. "Dynamics of firm-level upgrading and the role of learning in networks in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 341-369.
    11. Quaicoe, Alexander & Aboagye, Anthony Q.Q. & Bokpin, Godfred A., 2017. "Assessing the impact of export processing zones on economic growth in Ghana," Research in International Business and Finance, Elsevier, vol. 42(C), pages 1150-1163.
    12. Andrea González & Juan Carlos Hallak, 2022. "Relational links for insertion in non‐mass global value chains: Opportunities for middle‐income countries," Review of International Economics, Wiley Blackwell, vol. 30(2), pages 653-672, May.
    13. Thomas Bernhardt & William Milberg, 2012. "Does economic upgrading generate social upgrading? Insights from the horticulture, apparel, mobile phones and tourism sectors," Global Development Institute Working Paper Series ctg-2011-07, GDI, The University of Manchester.
    14. Pipkin, Seth & Fuentes, Alberto, 2017. "Spurred to Upgrade: A Review of Triggers and Consequences of Industrial Upgrading in the Global Value Chain Literature," World Development, Elsevier, vol. 98(C), pages 536-554.
    15. Linqing Liu & Shiye Mei, 2016. "Visualizing the GVC research: a co-occurrence network based bibliometric analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 109(2), pages 953-977, November.
    16. Stephanie Seguino, 2008. "Gender, Distribution, and Balance of Payments (revised 10/08)," Working Papers wp133_revised, Political Economy Research Institute, University of Massachusetts at Amherst.
    17. Gary Gereffi, 2019. "Global value chains and international development policy: Bringing firms, networks and policy-engaged scholarship back in," Journal of International Business Policy, Palgrave Macmillan, vol. 2(3), pages 195-210, September.
    18. Thomas Bernhardt & William Milberg, 2012. "Economic and social upgrading in global value chains: Analysis of horticulture, apparel, tourism and mobile telephones," Global Development Institute Working Paper Series ctg-2011-06, GDI, The University of Manchester.
    19. Matanda, Margaret Jekanyika & Freeman, Susan, 2009. "Effect of perceived environmental uncertainty on exporter-importer inter-organisational relationships and export performance improvement," International Business Review, Elsevier, vol. 18(1), pages 89-107, February.
    20. Emanuele Bacchiocchi & Massimo Florio & Anna Giunta, 2012. "Internationalisation and the agglomeration effect in the global value chain: the case of Italian automotive suppliers," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 5(3), pages 267-290.
    21. Saon Ray & Smita Miglani, 2018. "Upgrading in the Indian automobile sector: The role of lead firms," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 360, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bwp:bwppap:ctg-2010-04. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Rowena Harding (email available below). General contact details of provider: https://edirc.repec.org/data/wpmanuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.