The relationship between economic and social upgrading: a case study of the Western Cape textiles and clothing industry

Abstract

Economic and social upgrading have been eminent concepts in GVC research, especially in the textile and clothing industry due to its immense global fragmentation. These two concepts have risen to be analysing tools in the examination of the gains distribution throughout the value chain for firms and workers. Empirical researcher has revealed that there is economic upgrading for high road firms and economic downgrading for low-road firms in S.A’s T&C industry. The results of social upgrading have however been mixed. South African research on the relationship between these two concepts has not been wide; this has left a gap on the literature available on this topic. The South African industry has been in decline since the late 20th century, this has led to various firm-relocations, closures, job shedding and greater informalisation. This research provides a case study approach on three firms, all with different forms of ownership and one in the informal market. This research has shown that there has been a noticeable impact of process and product up/downgrading on the social up/downgrading of workers. While functional upgrading has provided social upgrading for a group of workers while simultaneously exposing others to social downgrading