provided by Research Papers in Economics
Adjustment to Globalisation: A Study of the Footwear Industry in
Europe
Paul Brenton
Anna Maria Pinna
and
Marc Vancauteren
Centre for European Policy Studies
Place Du Congrés 1
Brussels 1000
Tel: 322 2293936
Fax: 322 2194151
E-mail: [email protected]
Abstract
In this study of the footwear sector we seek to assess how producers in different EU
countries have adjusted to increased competition from low-wage countries. There are a
number of features of the performance of the sector in Europe which cast doubt over the
applicability of the standard trade model, which has typically been used to assess the
impact of globalisation. These characteristics also undermine a number of common
perceptions regarding low-skilled labour intensive industries. Firstly, the trade data
clearly demonstrate that as import penetration has increased so have export to output
ratios. This suggests that adjustment to more intense import competition could entail the
movement of resources into the production of higher quality differentiated fashion shoes
and not necessarily the movement of resources to other sectors. Secondly, the group of
production or unskilled workers in footwear is far from homogeneous, as is often
assumed in discussions of the impact of globalisation. Thirdly, for footwear it is
apparent that technological change has not been pervasive. Information regarding two
new technologies shows widely varying rates of application across countries. Finally,
some EU countries have been able to maintain employment and output in footwear
whilst in other countries production has declined dramatically. This suggests that a
variety of responses to globalisation are available to firms in OECD countries, including
outsourcing and overseas investment, quality upgrading and increased flexibility in the
context of industrial districts.
Preliminary and Subject to Change
Presented for the 40th Congress of the European Regional Science Association on
August 29th-September 1st, 2000 in Barcelona.
This paper is summary of a more comprehensive study which is available as Brenton,
Pinna and Vancauteren (2000). This work has been prepared under the research project
“Globalisation and Social Exclusion” financed by the European Commission under the
Targeted Socio-Economic Research (TSER) Programme.