TIGER project

WP 2.3.1. Economic Flows and Networks

GVC/GCC AnalysisPoli Roukova, NIGGG-BAS

Second Meeting

14-15 Oct 2010,Brussels

Objectives

Identification of distribution and implementation of tasks within the main value chain in which country/region/ firm participates.

Organizational forms and related governance structures within main value chains.

Social consequences: quality of jobs, working conditions, labour standards, and wages

Workplan and deliverables

Aug - Sept. 2010

GVC 1) Elaboration of synthesis report 1) Synthesis report: ‘ International division of labour among European regions: case studies of clothing industry and software services impact’

Sep 2010 to Feb 2011

GVC 1)Regional trade data for clothing industry and software industry

2) Field survey preparation - Design and elaboration of questionnaire

1)Industry regional data base

2) Questionnaire draft

Mar to Sep 2011 GVC 1) Field survey implementation: firm selection; interviews;

2) Evaluation and analysis of the data

3) Elaboration of variables for systematization of results

1)Draft report on the survey findings of clothing industry

2) Draft report on the survey findings of software services

Sep 2011 to Feb 2012

GVC 1) Assessment of impact on division of labour from GCC/CVC prospect in European regions

2) Typology of European regions on the case of clothing industry

3) Typology of European regions on the case of software services

1)Final report on regional impact of clothing industry - 20 pages

2)Final report on regional impact of software services – 20 pages

Regional data – Feb 2011

1) Position of Europe in the world (main regions/countries)

2)Main producers and exporters within Europe• Production data

• Trade data

• Employment data: structure by countries of industry’s employment – national level for Europe; share of manufacturing employment and share of total employment by NUTS 3 level of selected European countries

• Wages: NUTS 3 level of selected European countries

Changes in Regional Structures of EU clothing importers 1990-1999 with growing participation of ECE countries (Pickles, et al 2004)

(Pickles, et al 2004)

Upgrading (Pickles et al, 2008)

Change in Unit Values 2000-2005

LITHUANIA, -63.0%CHINA, -49.2%

DOMINICAN REP., -43.6%VIET-NAM, -42.0%

MEXICO, -41.8%ISRAEL, -40.3%

CZECH REPUBLIC, -39.8%INDONESIA, -37.5%

THAILAND, -35.8%BANGLADESH, -34.2%All EU15 Imports, -31.8%

SRI LANKA, -29.9%CAMBODIA, -29.3%

JORDAN, -29.2%HONDURAS, -25.8%

ALGERIA, -24.3%PAKISTAN, -21.8%

EGYPT, -20.5%POLAND, -14.4%

INDIA, -13.8%COSTA RICA, -7.5%

TURKEY, -5.6%MOROCCO, -4.4%

UKRAINE, 0.4%ROMANIA, 1.4%SLOVAKIA, 2.3%

HUNGARY, 4.5%TUNISIA, 11.0%

ESTONIA, 15.7%EL SALVADOR, 21.2%

BULGARIA, 30.3%LATVIA, 43.6%

-80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0%

1

Some key findings on software globalisation :

- Globalisation of the sector is envisaged as a business expansion both in home and host countries; sector needs more new markets and growth than cost savings;

- ECE countries increase their attractiveness in terms of sourcing and market options.

- There is a neighborhood effect in delocalisation of European IT (Germany-Poland; Sweden- Estonia; Greece –Bulgaria).

- India is producing standardized software and it is not a competitor to European IT sector which is dominated by custom solutions.

- Software outsourcing did not create unemployment in home countries- Some Central European countries reach the labour prices as these ones in

DC.- Most important factors than labour cost are skilled labour, creativity,

reliability and trust- Importance of political and fiscal stability of host countries.

Design and elaboration of questionnaire draft - Feb 2011

Interviews will be done through completing of semi-structured questionnaire, where the questions will be aggregated in three sections:

- General characteristics - Value chain characteristics: organizational forms and governance - Territorial impact – labour issues

The number of surveyed firms is planned to be twenty. Ten interviews will be done under each case study.

Field Survey

a) Design and elaboration of questionnaireb) Firm selection c) Implementationd) Evaluation and analysis of the data, e) Elaboration of variables for systematization of results, using regional

data of trade, production and employmentf) Draft report on survey findings

Thank You!