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Moving to Central-Eastern Europe: Fragmentation of Production and Competitiveness of the European Textile and Apparel Industry

Author

Listed:
  • Salvatore Baldone

    (Politecnico di Milano)

  • Fabio Sdogati

    (Politecnico di Milano)

  • Lucia Tajoli

    (Politecnico di Milano)

Abstract

International fragmentation of production towards some low labor-cost countries is the strategy followed by industrialized countries to counter the growing competitive pressures from other low labor-cost countries. Using custom data on Outward Processing Trade by EU textile and apparel firms we estimate the cost saving associated with Outward Processing in the Central and Eastern European countries relative to a counterfactual scenario in which firms do not take advantage of such practice. The process will continue at an increasing pace, it possibly being, along with product-quality upgrading, the only way for the EU apparel industry to stay competitive on world markets.

Suggested Citation

  • Salvatore Baldone & Fabio Sdogati & Lucia Tajoli, 2002. "Moving to Central-Eastern Europe: Fragmentation of Production and Competitiveness of the European Textile and Apparel Industry," Rivista di Politica Economica, SIPI Spa, vol. 92(1), pages 209-282, January-F.
    • Handle: RePEc:rpo:ripoec:v:92:y:2002:i:1:p:209-282
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    Citations

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    Cited by:

    1. Roberta Rabellotti & Alessia Amighini, 2003. "The effect of globalisation on industrial districts in Italy: evidence from the footwear sector," ERSA conference papers ersa03p500, European Regional Science Association.
    2. Paolo Crestanello & Giuseppe Tattara, 2006. "Connections and Competences in the Governance of the Value Chain. How Industrial Countries Maintain their Competitive Advantage," Working Papers 2006_48, Department of Economics, University of Venice "Ca' Foscari".
    3. Helg, Rodolfo & Tajoli, Lucia, 2005. "Patterns of international fragmentation of production and the relative demand for labor," The North American Journal of Economics and Finance, Elsevier, vol. 16(2), pages 233-254, August.
    4. Elia, Stefano & Maggi, Elena & Mariotti, Ilaria, 2009. "Does the logistics sector gain from manufacturing internationalisation? An empirical investigation on the Italian case," Economics & Statistics Discussion Papers esdp09052, University of Molise, Department of Economics.
    5. Roberta Rabellotti & Anna Carabelli & Giovanna Hirsch, 2007. "Italian SMEs and industrial districts on the move: Where are they going?," Working Papers 115, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
    6. Bernardina Algieri & Antonio Aquino & Marianna Succurro, 2022. "Trade Specialisation and Changing Patterns of Comparative Advantages in Manufactured Goods," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(3), pages 607-667, November.
    7. Sudeshna Mitra & Kausik Gupta, 2017. "Fragmentation, Skill Formation And International Capital Mobility," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(02), pages 335-350, March.
    8. Alessia Amighini & Stefano Chiarlone, 2005. "New comparative advantages in the Central and Eastern European countries," LIUC Papers in Economics 182, Cattaneo University (LIUC).
    9. Francesco Serti & Chiara Tomasi, 2008. "Firm Heterogeneity: do destinations of exports and origins of imports matter?," LEM Papers Series 2008/14, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    10. Rodolfo Helg & Lucia Tajoli, 2002. "Patterns of International Fragmentation of Production and Implications for the Labor Markets," Working Papers 503, Research Seminar in International Economics, University of Michigan.

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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