Economic and Social Upgrading in Global Value Chains: A Case Study of Myanmar’s Garment Sector

20 June 2020
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This report focuses on Myanmar’s garment sector, studying firm-level economic and social upgrades to inform inclusive industrial policies.

In the last few decades, globalisation has reshaped the production landscape in the garment-industry sector, leading to a global value chain (GVC) where developing countries position themselves based on their comparative advantages. This report examines the potential of global value chains (GVCs) to drive inclusive economic growth in Myanmar.

Drawing from surveys of 60 apparel firms, 202 interviews with production workers, and semi-structured interviews with various stakeholders, including policymakers, industry representatives, and experts, the report examines the Myanmar garment sector in relation to firm-level economic upgrading and social upgrading for workers. By examining economic and social upgrading, it aims to inform more inclusive industrial policies that benefit both workers and firms.

The first part of the report introduces the characteristics of firms and workers in the survey. The second part summarises the evidence of economic upgrading and social upgrading. Finally, the concluding section analyses the determinants of economic upgrading and social upgrading to answer two research questions: (1) what determines economic and social upgrading at the firm level; and (2) what types of workers are more likely to be socially upgraded, thus benefitting from the economic upgrading in their firms. Quantitative analysis is complemented by narrative interviews, providing a comprehensive view of the sector’s dynamics.