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

Céline Gimet, Bernard Guilhon () and Nathalie Roux ()
Additional contact information
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

No 1003, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon

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.

Keywords: offshoring; outsourcing; fragmentation; immiserising specialisation; relative wages; textile and clothing sector (search for similar items in EconPapers)
JEL-codes: F14 F16 L23 L67 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2010
New Economics Papers: this item is included in nep-dev and nep-int
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Citations: View citations in EconPapers (1)

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Working Paper: Fragmentation and immiserising specialisation: the case of the textile and clothing sector (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:gat:wpaper:1003

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