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Globalisation, Firm Upgrading And Impacts On Labour

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  • PETER KNORRINGA
  • LEE PEGLER

Abstract

The question that drives this paper is: When can we expect firm upgrading by developing‐country suppliers in global value chains will lead to improvements in labour conditions? To deal with this question we, (a) position firm upgrading in the global value chain approach, (b) investigate existing evidence and conceptualisations on how economic globalisation impacts on labour, and (c) develop some hypotheses on when we can expect firm upgrading and improvements in labour conditions to go together. We conclude that firm upgrading in developing‐country suppliers in global value chains as a rule does not lead to improvements in labour conditions. Instead, the much broader and more forceful process of immiserising growth makes it very unlikely that workers in such relatively low‐skilled production activities will enjoy improvements in labour conditions. Ethical sourcing may lead to improvements in labour conditions of core workers in final product manufacturers and key supplier firms, but it is as yet unclear to what extent such a business model can and will be disseminated. More generally, even though economic globalisation does selectively create new jobs, even labour conditions of core workers may be under pressure while the overall proportion of core workers appears to be declining.

Suggested Citation

  • Peter Knorringa & Lee Pegler, 2006. "Globalisation, Firm Upgrading And Impacts On Labour," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 97(5), pages 470-479, December.
    • Handle: RePEc:bla:tvecsg:v:97:y:2006:i:5:p:470-479
    DOI: 10.1111/j.1467-9663.2006.00357.x
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    Cited by:

    1. Knorringa, P., 2007. "Asian drivers and the future of responsible production and consumption," ISS Working Papers - General Series 18752, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    2. Bob Doherty & Pichawadee Kittipanya-Ngam, 2021. "The Role of Social Enterprise Hybrid Business Models in Inclusive Value Chain Development," Sustainability, MDPI, vol. 13(2), pages 1-24, January.
    3. Tashlin Lakhani & Sarosh Kuruvilla & Ariel Avgar, 2013. "Across Boundaries: The Global Challenges Facing Workers and Employment Research 50th Anniversary Special Issue," British Journal of Industrial Relations, London School of Economics, vol. 51(3), pages 440-472, September.
    4. Keshab Das, 2015. "Situating Labour in the Global Production Network Debate: As if the ‘South’ Mattered," Working Papers id:6665, eSocialSciences.
    5. Staritz, Cornelia, 2012. "Value chains for development? Potentials and limitations of global value chain approaches in donor interventions," Working Papers 31, Austrian Foundation for Development Research (ÖFSE).
    6. MILE 02, Anirudh Shingal, 2015. "Labour market effects of integration into GVCs: Review of literature," Papers 1109, World Trade Institute.
    7. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    8. Peter Knorringa & A.H.J. (Bert) Helmsing, 2008. "Forum 2008," Development and Change, International Institute of Social Studies, vol. 39(6), pages 1053-1062, November.
    9. Stephanie Barrientos & Peter Knorringa & Barbara Evers & Margareet Visser & Maggie Opondo, 2016. "Shifting regional dynamics of global value chains: Implications for economic and social upgrading in African horticulture," Environment and Planning A, , vol. 48(7), pages 1266-1283, July.
    10. Elisa Giuliani, 2016. "Human Rights and Corporate Social Responsibility in Developing Countries’ Industrial Clusters," Journal of Business Ethics, Springer, vol. 133(1), pages 39-54, January.
    11. Pegler, L.J., 2011. "Sustainable Value Chains and Labour - Linking Chain and "Inner Drivers"," ISS Working Papers - General Series 525, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    12. Srinivas, Smita, 2009. "Cost, risk, and labor markets: the state and sticky institutions in global production networks," MPRA Paper 52690, University Library of Munich, Germany.
    13. Christina Stringer & Steve Hughes & D Hugh Whittaker & Nigel Haworth & Glenn Simmons, 2016. "Labour standards and regulation in global value chains: The case of the New Zealand Fishing Industry," Environment and Planning A, , vol. 48(10), pages 1910-1927, October.
    14. Siegmann, K.A. & Merk, J. & Knorringa, P., 2014. "Voluntary initiatives in global value chains," ISS Working Papers - General Series 51297, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    15. Rossi, Arianna, 2013. "Does Economic Upgrading Lead to Social Upgrading in Global Production Networks? Evidence from Morocco," World Development, Elsevier, vol. 46(C), pages 223-233.
    16. Nandini Ramamurthy, 2021. "Is Work Organisation Causing Precariousness? Insights from Textile Industry in South India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(4), pages 1115-1134, December.

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