‘Precarious upgrading’ in electronics global production networks in Central and Eastern Europe: the cases of Hungary and Romania
Abstract The electronics manufacturing sector has played a prominent role in export-oriented development strategies, as participation in this high-tech industry promises access to new technology, high skilled jobs and a fast-growing market. Against this background, many governments in Central and Eastern Europe (CEE) have sought to attract investment in this sector, where foreign firms became the key actors in reshaping after 1989 and where integrating into global production networks (GPNs) was widely embraced as a means to modernize and upgrade local industries. We assess to what extent the potential benefits arising from integrating into electronics GPNs have materialized in Hungary, an established player and the most important electronics exporting country in the region, and Romania, a newcomer country in electronics manufacturing. To analyse these questions, we look at the organizational and geographical configuration of the electronics sector and examine the impact integration into these networks has had on local firms and workers and to what extent this integration has led to economic and social upgrading. With regard to economic upgrading processes, we suggest that the upgrading concept needs to pay more attention to the ‘reach’ of economic upgrading. This is particularly important when integration into GPNs takes place via foreign direct investment (FDI), where economic upgrading processes may be focused on transnational corporations (TNCs) with limited spillovers to local firms. The social upgrading trajectory is influenced importantly by global industry dynamics, for example high flexibility pressures and the tiered nature of the workforce in electronics GPNs, and countries' specific institutional and regulatory contexts.
|Date of creation:||2013|
|Contact details of provider:|| Postal: Humanities Bridgeford Street, Oxford Road,Manchester, M13 9PL|
Phone: +44(0)7717 881567
Web page: http://www.gdi.manchester.ac.uk/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jyrki Ali-Yrkkö & Petri Rouvinen & Timo Seppälä & Pekka Ylä-Anttila, 2011.
"Who Captures Value in Global Supply Chains? Case Nokia N95 Smartphone,"
Journal of Industry, Competition and Trade,
Springer, vol. 11(3), pages 263-278, September.
- Ali-Yrkkö, Jyrki & Rouvinen, Petri & Seppälä, Timo & Ylä-Anttila, Pekka, 2011. "Who Captures Value in Global Supply Chains? Case Nokia N95 Smartphone," Discussion Papers 1240, The Research Institute of the Finnish Economy.
- Slavo Radosevic, 2002. "La industria electronica en los paises de Europe central y oriental: una nueva localizacion de la production global (The electronics industry in Central and Eastern Europe: a new global) production lo," UCL SSEES Economics and Business working paper series 21, UCL School of Slavonic and East European Studies (SSEES).
- 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.
- Miklos Szanyi & Magdolna Sass & Peter Csizmadia & Miklos Illessy & Ichiro Iwasaki & Csaba Mako, 2009. "Clusters and the development of supplier networks for transnational companies," IWE Working Papers 187, Institute for World Economics - Centre for Economic and Regional Studies- Hungarian Academy of Sciences.
- Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Global production networks: realizing the potential," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 271-295, May.
- William MILBERG & Deborah WINKLER, 2011.
"Economic and social upgrading in global production networks: Problems of theory and measurement,"
International Labour Review,
International Labour Organization, vol. 150(3-4), pages 341-365, December.
- William Milberg & Deborah Winkler, 2012. "Economic and Social Upgrading in Global Production Networks: Problems of Theory and Measurement," Brooks World Poverty Institute Working Paper Series ctg-2010-04, BWPI, The University of Manchester.
- Timothy J. Sturgeon, 2003. "What really goes on in Silicon Valley? Spatial clustering and dispersal in modular production networks," Journal of Economic Geography, Oxford University Press, vol. 3(2), pages 199-225, April.
- Grazia Ietto-Gillies, 2012. "Transnational companies and finance," Chapters, in: Handbook of Critical Issues in Finance, chapter 42, pages i-ii Edward Elgar Publishing.
- Narula, Rajneesh & Bellak, Christian, 2008.
"EU enlargement and consequences for FDI assisted industrial development,"
MERIT Working Papers
067, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Christian Bellak & Rajneesh Narula, 2008. "EU enlargement and consequences for FDI assisted industrial development," Economics & Management Discussion Papers em-dp2008-69, Henley Business School, Reading University.
- Alice H. Amsden & Wan-wen Chu, 2003. "Beyond Late Development: Taiwan's Upgrading Policies," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011980.
- Standing, Guy, 1999. "Global Feminization Through Flexible Labor: A Theme Revisited," World Development, Elsevier, vol. 27(3), pages 583-602, March.
- Slavo Radosevic & Deniz Eylem Yoruk, 2001. "Videoton: the Growth of Enterprise through Entrepreneurship and Network Alignment," UCL SSEES Economics and Business working paper series 3, UCL School of Slavonic and East European Studies (SSEES).
- Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 451-496, June.
- Boy Luthje, 2002. "Electronics Contract Manufacturing: Global Production and the International Division of Labor in the Age of the Internet," Industry and Innovation, Taylor & Francis Journals, vol. 9(3), pages 227-247.
- Plank, Leonhard & Rossi, Arianna & Staritz, Cornelia, 2012. "Workers and social upgrading in "fast fashion": The case of the apparel industry in Morocco and Romania," Working Papers 33, Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE) / Austrian Foundation for Development Research.
- Jason Dedrick & Kenneth L. Kraemer & Greg Linden, 2010. "Who profits from innovation in global value chains? A study of the iPod and notebook PCs," Industrial and Corporate Change, Oxford University Press, vol. 19(1), pages 81-116, February.
- Sass, Magdolna, 2004. "FDI in Hungary - the first mover's advantage and disadvantage," EIB Papers 8/2004, European Investment Bank, Economics Department.
- Gibbon, Peter, 2001. "Upgrading Primary Production: A Global Commodity Chain Approach," World Development, Elsevier, vol. 29(2), pages 345-363, February.
- Ponte, Stefano & Ewert, Joachim, 2009. "Which Way is "Up" in Upgrading? Trajectories of Change in the Value Chain for South African Wine," World Development, Elsevier, vol. 37(10), pages 1637-1650, October.
- Gabor Hunya & Magdolna Sass, 2005. "Coming and Going: Gains and Losses from Relocations Affecting Hungary," wiiw Research Reports 323, The Vienna Institute for International Economic Studies, wiiw.
When requesting a correction, please mention this item's handle: RePEc:bwp:bwppap:ctg-2013-31. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rowena Harding)
If references are entirely missing, you can add them using this form.