Global production networks and social well-being: Evidence from the indonesian automobile industry

This paper investigates the economic improvements in the Indonesian automotive industry, as measured by its integration into global production networks (GPNs) and global value chains (GVCs). These gains have been followed by improvements in workers’ social well-being. Using the economic-social upgrading frame-work derived from the International Labor Organization’s (ILO) Decent Work (DW) concept, the results show that the auto industry is in a “high-road” growth trajectory. The industry has succeeded in managing its GPN position with progress in workers’ employment conditions. The study found that sustaining worker well-being may prove difficult due to high volatility related to the aggregate social upgrading index.