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Social upgrading in globalized production: The case of the textile and clothing industry

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  • Céline GIMET
  • Bernard GUILHON
  • Nathalie ROUX

Abstract

Vertical specialization generated by the international fragmentation of production within global networks is driven not only by comparative advantage, but also by the locational decisions of lead firms which determine the role and bargaining power of local producers in their value chain. This study examines the consequences of such specialization in textiles and clothing for 26 labour-abundant countries from 1990 to 2007. Fixed effects regressions based on panel data reveal that the industry does not always reap the benefits of the resulting international trade integration. Rather, the authors observe a negative relationship between vertical specialization and relative real wages in the textile and clothing industry.

Suggested Citation

  • Céline GIMET & Bernard GUILHON & Nathalie ROUX, 2015. "Social upgrading in globalized production: The case of the textile and clothing industry," International Labour Review, International Labour Organization, vol. 154(3), pages 303-327, September.
    • Handle: RePEc:bla:intlab:v:154:y:2015:i:3:p:303-327
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    File URL: http://hdl.handle.net/10.1111/j.1564-913X.2015.00244.x
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    Cited by:

    1. Federico Riccio & Giovanni Dosi & Maria Enrica Virgillito, 2023. "Smile without a reason why: functional specialisation and income distribution along global value chains," LEM Papers Series 2023/31, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. repec:gdk:wpaper:54 is not listed on IDEAS
    3. Park-Poaps H, 2018. "The Roles Technological Advancement and Knowledge Transfers in the Global Textiles and Clothing Sector," Current Trends in Fashion Technology & Textile Engineering, Juniper Publishers Inc., vol. 2(1), pages 13-17, January.
    4. Muriel Périsse & Clément Séhier, 2019. "Analysing wages and labour institutions in China: An unfinished transition," The Economic and Labour Relations Review, , vol. 30(3), pages 400-421, September.
    5. Robert Home & Mareike Weiner & Christian Schader, 2021. "Smart Mixes in International Supply Chains: A Definition and Analytical Tool, Illustrated with the Example of Organic Imports into Switzerland," Administrative Sciences, MDPI, vol. 11(3), pages 1-20, September.
    6. repec:gdk:wpaper:66 is not listed on IDEAS

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