ADJUSTMENT TO GLOBALISATION: A STUDY OF THE FOOTWEAR INDUSTRY IN EUROPE

Figure 3 Shares of extra-EC12 imports by region of origin

Thus the past 15 years have seen important changes in the magnitude of import
penetration on the EU footwear market and that of each member country. This has been
accompanied by substantial adjustments in the source of extra-EU imports. At the more
detailed product level the data confirm a substantial increase in the penetration of
imports of final footwear products by low-wage countries and the resourcing of parts
and components away from OECD countries to the Central and Eastern European
countries and to countries in Asia (excluding the NICs).

We now address how exports of the different categories of footwear have developed,
and in particular, finished products relative to parts and components. Much of the
discussion on the how globalisation has affected labour market outcomes in OECD
countries has concentrated upon the impact of the increased availability of cheaper
products imported from low-wage economies. However, a world of more integrated
economies implies not only the possibility to export the national variety of a product but
also the option to partially or completely relocate domestic production to low-wage
locations. The two developments are linked if relocation occurs as a defensive strategy
to the availability of cheaper imports.

Finished footwear products exported from the EU are mainly sold in other OECD
countries, although the importance of the OECD has been declining and the Central and
Eastern European countries have risen in prominence as a market for finished EU

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