Economic and social development in global production networks: Lessons from the indonesian footwear industry

Padang Wicaksono, Nanetta Hardini, Toni Bakhtiar

Research output: Contribution to journalArticlepeer-review

Abstract

As an ASEAN country with strong annual economic growth, Indonesia is improving its global competitive-ness. Indonesia’s participation in global production networks (GPNs) generates a positive impact on its in-dustries. The labor-intensive Indonesian footwear industry has undergone rapid development. High domestic and foreign demand for the country’s footwear has led to rapid development and domestic employment gains. This research reviews the implications of GPNs on industrial development and social well-being. It uses the economic and social development of the Indonesian footwear industry as a case study. The paper uses a par-simonious approach to measure economic and social conditions in this industry. Based on the results, the Indonesian footwear industry has experienced “high-road” growth, showing improvements in key economic and social standards.

Original languageEnglish
Pages (from-to)127-144
Number of pages18
JournalInternational Journal of Business and Society
Volume20
Issue numberS1
Publication statusPublished - 1 Jan 2019

Keywords

  • Economic and social development
  • Employment
  • Footwear industry
  • Global production network
  • Global value chain

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