Abstract
Contemporary economic globalization as a highly dynamic process has seen substantial changes
in its organization, governance, geographies and impacts. These global shifts can be characterized
by – among other aspects – increased functional and geographical fragmentation of production
processes, various waves of outsourcing and off-shoring, changing geographies of production and
consumption and associated labour market dynamics. At the same time, nation states and regional
economic blocs aim at increasing macro-regional and global integration through bilateral and
multilateral trade and investment negotiations, predicated on transformations in transportation and
logistics technologies that enable the functioning of complex global production networks (GPNs)
and link regional, national and supra-national economies. This paper aims to assess the
consequences of what has been termed a ‘logistics revolution’ for economic and social upgrading
in global logistics and client sectors. It starts by charting the existing research base and exploring
the structure and dynamics of the global logistics industry, before addressing the potential of and
obstacles to economic and social upgrading. The analysis highlights the often-neglected
importance of logistics as a global industry: a major employer and value generator in its own right,
with its own evolving GPNs. It demonstrates the increasingly diverse structure of logistics
operations and labour markets, creating opportunities for upgrading through innovation and new
technologies, but at the same time it shows the continued prevalence of ‘low-road’ logistics labour
markets and workers often struggling to secure labour rights, decent wages and improved working
conditions. These issues are illustrated and discussed for both the global logistics industry itself
and the logistics activities in client sectors such as horticulture, apparel and mobile
communications. The paper concludes with reflections on the contingent and variegated outcomes
of logistics development and avenues for future research.
in its organization, governance, geographies and impacts. These global shifts can be characterized
by – among other aspects – increased functional and geographical fragmentation of production
processes, various waves of outsourcing and off-shoring, changing geographies of production and
consumption and associated labour market dynamics. At the same time, nation states and regional
economic blocs aim at increasing macro-regional and global integration through bilateral and
multilateral trade and investment negotiations, predicated on transformations in transportation and
logistics technologies that enable the functioning of complex global production networks (GPNs)
and link regional, national and supra-national economies. This paper aims to assess the
consequences of what has been termed a ‘logistics revolution’ for economic and social upgrading
in global logistics and client sectors. It starts by charting the existing research base and exploring
the structure and dynamics of the global logistics industry, before addressing the potential of and
obstacles to economic and social upgrading. The analysis highlights the often-neglected
importance of logistics as a global industry: a major employer and value generator in its own right,
with its own evolving GPNs. It demonstrates the increasingly diverse structure of logistics
operations and labour markets, creating opportunities for upgrading through innovation and new
technologies, but at the same time it shows the continued prevalence of ‘low-road’ logistics labour
markets and workers often struggling to secure labour rights, decent wages and improved working
conditions. These issues are illustrated and discussed for both the global logistics industry itself
and the logistics activities in client sectors such as horticulture, apparel and mobile
communications. The paper concludes with reflections on the contingent and variegated outcomes
of logistics development and avenues for future research.
| Original language | English |
|---|---|
| Place of Publication | Manchester |
| Number of pages | 44 |
| Publication status | Published - 2013 |
Publication series
| Name | Capturing the Gains Working Paper |
|---|---|
| Publisher | University of Manchester |
| No. | 38 |
Keywords
- global production networks
- logistics industry
- value chain fragmentation
- outsourcing
- economic upgrading
- social upgrading
- horticulture
- apparel industry
- mobile communications