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Growing against the odds: government agency and strategic recoupling as sources of competitiveness in the garment industry of the Pearl River Delta

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  • Florian Butollo

Abstract

Despite pressures of rising production costs, China’s garment industry has recently displayed continuous growth. We argue that this persisting strength is the result of ‘strategic recoupling’ through which former low-end exporters forge new links to the domestic market or supply higher value-added products to export markets while relocating parts of their operations to regions with lower production costs. Drawing on empirical data from clusters in the Pearl River Delta (PRD), it is analysed how local governments can act as agents in such processes. This is seen as one source of the ongoing attractiveness of the PRD as a hub for the garment industry.

Suggested Citation

  • Florian Butollo, 2015. "Growing against the odds: government agency and strategic recoupling as sources of competitiveness in the garment industry of the Pearl River Delta," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(3), pages 521-536.
    • Handle: RePEc:oup:cjrecs:v:8:y:2015:i:3:p:521-536.
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    References listed on IDEAS

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    1. Christopher A. MCNALLY, 2013. "Refurbishing State Capitalism: A Policy Analysis of Efforts to Rebalance China’s Political Economy," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 42(4), pages 45-71.
    2. Olivier Cattaneo & Gary Gereffi & Cornelia Staritz, 2010. "Global Value Chains in a Postcrisis World : A Development Perspective," World Bank Publications - Books, The World Bank Group, number 2509.
    3. Douglas Zhihua Zeng, 2010. "Building Engines for Growth and Competitiveness in China : Experience with Special Economic Zones and Industrial Clusters," World Bank Publications - Books, The World Bank Group, number 2501.
    4. Brandt, Loren & Thun, Eric, 2010. "The Fight for the Middle: Upgrading, Competition, and Industrial Development in China," World Development, Elsevier, vol. 38(11), pages 1555-1574, November.
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    Cited by:

    1. Chun Yang, 2020. "The transformation of foreign investment-induced ‘exo(genous)-urbanisation’ amidst industrial restructuring in the Pearl River Delta, China," Urban Studies, Urban Studies Journal Limited, vol. 57(3), pages 618-635, February.
    2. John Pickles & Leonhard Plank & Cornelia Staritz & Amy Glasmeier, 2015. "Trade policy and regionalisms in global clothing production networks," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(3), pages 381-402.
    3. Butollo, Florian & Staritz, Cornelia, 2022. "Deglobalisierung, Rekonfiguration oder Business as Usual? COVID-19 und die Grenzen der Rückverlagerung globalisierter Produktion [Deglobalization, reconfiguration, or business as usual? COVID-19 an," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 32(3), pages 393-425.
    4. Enrico Fontana & Muhammad Atif & Huma Sarwar, 2024. "Pressures for sub‐supplier sustainability compliance: The importance of target markets in textile and garment supply chains," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 3794-3810, July.
    5. Butollo, Florian, 2021. "Digitalization and the geographies of production: Towards reshoring or global fragmentation?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 25(2), pages 259-278.

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