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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Céline Gimet & Bernard Guilhon & Nathalie Roux, 2010. "Fragmentation and immiserising specialisation : the case of the textile and clothing sector," Working Papers 1003, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
  • Handle: RePEc:gat:wpaper:1003
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    File URL: ftp://ftp.gate.cnrs.fr/RePEc/2010/1003.pdf
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    References listed on IDEAS

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    1. Pol Antràs & Luis Garicano & Esteban Rossi-Hansberg, 2006. "Offshoring in a Knowledge Economy," The Quarterly Journal of Economics, Oxford University Press, vol. 121(1), pages 31-77.
    2. Lionel Fontagné & Michaël Freudenberg & Deniz Ünal, 1995. "Régionalisation et échanges de biens intermédiaires," Working Papers 1995-11, CEPII research center.
    3. 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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    Cited by:

    1. Lectard Pauline, 2017. "Working Paper 292 - Chaines de valeur et Transformation structurelle soutenable," Working Paper Series 2402, African Development Bank.

    More about this item

    Keywords

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

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

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