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Does economic upgrading generate social upgrading? Insights from the horticulture, apparel, mobile phones and tourism sectors

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  • Thomas Bernhardt
  • William Milberg

Abstract

We implement a “parsimonious” and operational approach to measuring economic and social upgrading over 1990-2009 in four global value chains -- apparel, mobile phones, agrofoods and tourism -- based entirely on data published by international institutions. Economic upgrading is defined as a combination of growth in export market shares and export unit values. Social upgrading is a combination of changes in employment and real wages. We find considerable variation across sectors in the relation between economic and social change. “Downgrading” is not uncommon, especially in the social realm. Economic upgrading is often not associated with social upgrading, but social upgrading occurs almost always when economic upgrading is also observed.

Suggested Citation

  • Thomas Bernhardt & William Milberg, 2012. "Does economic upgrading generate social upgrading? Insights from the horticulture, apparel, mobile phones and tourism sectors," Global Development Institute Working Paper Series ctg-2011-07, GDI, The University of Manchester.
    • Handle: RePEc:bwp:bwppap:ctg-2011-07
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    References listed on IDEAS

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    1. William MILBERG & Deborah WINKLER, 2011. "Economic and social upgrading in global production networks: Problems of theory and measurement," International Labour Review, International Labour Organization, vol. 150(3-4), pages 341-365, December.
    2. Artola, Ner & Zepeda, Eduardo & Rabellotti, Roberta & Gomes, Raquel & Amighini, Alessia & Maggi Campos, Claudio & Villaschi Filho, Arlindo & Pietrobelli, Carlo & Cassiolato, José Eduardo & Parrilli, M, 2006. "Upgrading to Compete: Global Value Chains, Clusters, and SMEs in Latin America," IDB Publications (Books), Inter-American Development Bank, number 247, November.
    3. Humphrey, John,, 2004. "Upgrading in global value chains," ILO Working Papers 993698523402676, International Labour Organization.
    4. Ner Artola & Eduardo Zepeda & Roberta Rabellotti & Raquel Gomes & Alessia Amighini & Claudio Maggi Campos & Arlindo Villaschi Filho & Carlo Pietrobelli & José Eduardo Cassiolato & Mario Davide Parrill, 2006. "Upgrading to Compete: Global Value Chains, Clusters, and SMEs in Latin America," IDB Publications (Books), Inter-American Development Bank, number 13158 edited by Roberta Rabellotti & Carlo Pietrobelli, February.
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    6. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    7. Raphael Kaplinsky & Jeff Readman, 2005. "Globalization and upgrading: what can (and cannot) be learnt from international trade statistics in the wood furniture sector?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(4), pages 679-703, August.
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