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

Céline Gimet, Bernard Guilhon and Nathalie Roux
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Céline Gimet: IEP Aix-en-Provence - Sciences Po Aix - Institut d'études politiques d'Aix-en-Provence
Bernard Guilhon: SKEMA Business School
Nathalie Roux: AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique

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Abstract: 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.

Date: 2015-11-24
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Published in International Labour Review, 2015, 154 (3), pp.303-327. ⟨10.1111/j.1564-913X.2015.00244.x⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05509795

DOI: 10.1111/j.1564-913X.2015.00244.x

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