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The co-evolution of concentration in mobile phone global value chains and its impact on social upgrading in developing countries

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  • Joonkoo Lee
  • Gary Gereffi

Abstract

This paper examines the relationship of economic and social upgrading in the global value chain (GVC) of mobile phone manufacturing. It specifically questions (1) how the GVCs of mobile phone manufacturing have changed the dynamics of trade, production and value creation and capturing in developing countries; and (2) how those dynamics have affected the social upgrading of workers in GVCs in terms of employment and wages. The paper identifies several key features of the mobile phone GVC. First, although mobile phone manufacturing was fragmented significantly over the past decade as a result of the relocation of production to developing economies, by the end of the decade it was characterized by the mutually reinforcing co-evolution of geographic and organizational concentration within the mobile phone GVC. Second, global mobile phone production is driven by a handful of lead firms. The consolidation of lead firms helps drive the consolidation of their suppliers, while lead firms capture much more value than their contract manufacturers do. Finally, GVC participation has a significant impact in terms of generating employment where manufacturing is concentrated, but it has a limited impact on wage increase.

Suggested Citation

  • Joonkoo Lee & Gary Gereffi, 2013. "The co-evolution of concentration in mobile phone global value chains and its impact on social upgrading in developing countries," Global Development Institute Working Paper Series ctg-2013-25, GDI, The University of Manchester.
    • Handle: RePEc:bwp:bwppap:ctg-2013-25
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    References listed on IDEAS

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    Cited by:

    1. Leonhard Plank & Cornelia Staritz, 2013. "‘Precarious upgrading’ in electronics global production networks in Central and Eastern Europe: the cases of Hungary and Romania," Global Development Institute Working Paper Series ctg-2013-31, GDI, The University of Manchester.
    2. Plank, Leonhard & Staritz, Cornelia, 2013. ""Precarious upgrading" in electronics global production networks in Central and Eastern Europe: The cases of Hungary and Romania," Working Papers 41, Austrian Foundation for Development Research (ÖFSE).
    3. Sumangala Damodaran, 2013. "New strategies of industrial organization: outsourcing and consolidation in the mobile telecom sector in India," Global Development Institute Working Paper Series ctg-2013-32, GDI, The University of Manchester.
    4. Taguchi, Hiroyuki, 2018. "The involvement in global value chains and its policy implication in Vietnam," MPRA Paper 84367, University Library of Munich, Germany.
    5. Baek, Hyun & Lee, Heesang, 2021. "Framework of Socio-Technology Analysis and Prescriptions for a sustainable society: Focusing on the mobile technology case," Technology in Society, Elsevier, vol. 65(C).
    6. Gary Gereffi & Hyun-Chin Lim & Joonkoo Lee, 2021. "Trade policies, firm strategies, and adaptive reconfigurations of global value chains," Journal of International Business Policy, Palgrave Macmillan, vol. 4(4), pages 506-522, December.
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    8. Defeng Zhang & Zhilu Sun, 2023. "The Impact of Agricultural Global Value Chain Participation on Agricultural Total Factor Productivity," Agriculture, MDPI, vol. 13(11), pages 1-20, November.
    9. Johann Maree & Rachel Piontak & Tonny Omwansa & Isaac Shinyekwa & Kamotho Njenga, 2013. "Developmental uses of mobile phones in Kenya and Uganda," Global Development Institute Working Paper Series ctg-2013-35, GDI, The University of Manchester.
    10. Taguchi, Hiroyuki & Lar, Ni, 2015. "Global-value-chains participation and industrial upgrading in Asian developing economies," MPRA Paper 65708, University Library of Munich, Germany.
    11. Tanrattanaphong, Borworn & Hu, Baiding & Gan, Christopher, 2020. "The impacts of value chain upgrading on the export of processed food," Food Policy, Elsevier, vol. 93(C).
    12. Sun, Yutao & Grimes, Seamus, 2016. "China’s increasing participation in ICT’s global value chain: A firm level analysis," Telecommunications Policy, Elsevier, vol. 40(2), pages 210-224.
    13. Neil M. Coe & Martin Hess, 2013. "Economic and social upgrading in global logistics," Global Development Institute Working Paper Series ctg-2013-38, GDI, The University of Manchester.
    14. Parvez Alam & Ann George, 2015. "After-Life of Mobile Phones: Waste or Return to Production?," Working Papers id:7185, eSocialSciences.
    15. Hiroyuki Taguchi, 2014. "Dynamic Impacts of Global Value Chains Participation on Asian Developing Economies," Foreign Trade Review, , vol. 49(4), pages 313-326, November.

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