Reconfiguring ‘post‐socialist’ regions: cross‐border networks and regional competition in the Slovak and Ukrainian clothing industry

Abstract

AbstractThe global garment industry is currently being reshaped in dramatic ways through processes of trade liberalization, delocalization and interfirm and interregional competition. There has been much speculation about the increasing importance of factor (especially labour) costs in fuelling further rounds of de‐localization of garment production towards low‐cost production locations, such as China and India. However, the extent to which these processes mean the end to garment production in higher factor‐cost locations, including those neighbouring the major clothing markets of the USA and the EU, is open to question. In this article we interrogate the interregional shifts in garment sourcing taking place in Europe and its surrounding regions. While factor costs (including labour) are important determinants of the geography of sourcing, a range of other costs (logistical and policy costs) are important in structuring the geographies of global and regional production. Firms in the Slovak Republic are responding to increasing competitive pressures and we assess how trans‐border sourcing, subcontracting and FDI are being integrated into strategies to sustain European production networks. We highlight the emergence of cross‐border production relocation to Ukraine as one specific strategy. We examine the product specificity of these changes and the ways in which they are embedded within already existing production networks, forms of cross‐border contracting and central European trade regimes. In other words, we explore some of the forces that shape the somewhat tentative continuation of garment production for export to EU markets in central Europe despite the ‘spectre of China’.