TIGER project WP Economic Flows and Networks GVC/GCC Analysis Poli Roukova, NIGGG-BAS Second Meeting 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 GVC1) Elaboration of synthesis report1) Synthesis report: ‘ International division of labour among European regions: case studies of clothing industry and software services impact’ Sep 2010 to Feb 2011 GVC1)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 GVC1) 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 GVC1)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 ) 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 with growing participation of ECE countries (Pickles, et al 2004)

(Pickles, et al 2004)

Upgrading (Pickles et al, 2008)

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 questionnaire b) Firm selection c) Implementation d) Evaluation and analysis of the data, e) Elaboration of variables for systematization of results, using regional data of trade, production and employment f) Draft report on survey findings

Thank You!