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Journal of International Economics 48 (1999) 37–70
International trade and industrial upgrading in the
apparel commodity chain
Gary Gereffi*
Department of Sociology, Duke University, Durham, NC 27708-0088, USA
Abstract
This article uses a global commodity chains perspective to analyze the social and
organizational dimensions of international trade networks. In linking international trade and
industrial upgrading, this article specifies: the mechanisms by which organizational learning
occurs in trade networks; typical trajectories from assembly to OEM and OBM export roles;
and the organizational conditions that facilitate industrial upgrading moves such as the shift
from assembly to full-package networks. The empirical focus is the apparel industry, with
an emphasis on Asia. 1999 Elsevier Science B.V. All rights reserved.
Keywords : Global commodity chains; Industrial upgrading; OEM; OBM; Apparel; East
Asia
JEL classification : F14; F23
Globalization has altered the competitive dynamics of nations, firms, and
industries. This is most clearly seen in changing patterns of international trade,
where the explosive growth of imports in developed countries indicates that the
center of gravity for the production and export of many manufactures has moved
to an ever expanding array of newly industrializing economies (NIEs) in the Third
World. This shift is central to the ‘East Asian miracle,’ which refers to the handful
of high-performing Asian economies that have attained lofty per capita growth
rates, relatively low income inequality, high educational attainment, record levels
of domestic saving and investment, and booming exports from the 1960s to the
mid-1990s (World Bank, 1993).
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