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Fragmentation and immiserising specialisation : the case of the textile and clothing sector

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  • Céline Gimet

    ()
    (UMR CNRS 5824 GATE Lyon-Saint-Etienne,93, chemin des Mouilles B.P. 167 69131 Ecully, France)

  • Bernard Guilhon

    ()
    (DEFI EA 4265, Faculty of Economics and Management, University of the Mediterranean, Château Lafarge, route des Milles, 13290 Aix-en-Provence)

  • Nathalie Roux

    ()
    (DEFI EA 4265, Faculty of Economics and Management, University of the Mediterranean, Château Lafarge, route des Milles, 13290 Aix-en-Provence)

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    Abstract

    With production activity tending rapidly towards international fragmentation, this study examines the consequences for labour countries of the forms of specialisation brought about by fragmentation processes. It further addresses the risk that fragmented sectors may become excluded from greater developments within the manufacturing industry as a whole. An empirical analysis using panel data reveals that, contrary to expectation, the textile and clothing sector in labour countries does not always reap the positive benefits of this form of international trade integration. Rather, we observe a phenomenon of immiserising specialisation, due to a drop in relative wages within this sector.

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    File URL: ftp://ftp.gate.cnrs.fr/RePEc/2010/1003.pdf
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    Bibliographic Info

    Paper provided by Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure in its series Working Papers with number 1003.

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    Length: 22 pages
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:gat:wpaper:1003

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    Related research

    Keywords: offshoring; outsourcing; fragmentation; immiserising specialisation; relative wages; textile and clothing sector;

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    1. Esteban Rossi-Hansberg & Pol Antras & Luis Garicano, 2005. "Offshoring in a Knowledge Economy," 2005 Meeting Papers 196, Society for Economic Dynamics.
    2. Andrés Rodríguez-Clare, 2010. "Offshoring in a Ricardian World," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 227-58, April.
    3. Lionel Fontagné & Michaël Freudenberg & Deniz Ünal, 1995. "Régionalisation et échanges de biens intermédiaires," Working Papers 1995-11, CEPII research center.
    4. Timothy Sturgeon & Johannes Van Biesebroeck & Gary Gereffi, 2008. "Value chains, networks and clusters: reframing the global automotive industry," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 297-321, May.
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