This paper explores the extent of economic and social upgrading in the electronics and automotive sectors of Eastern Central Europe (ECE) that are highly dependent on the global production networks (GPNs) of major foreign corporations. The methodology combines quantitative analysis of the World Input-Output Data with qualitative analysis of interviews conducted at manufacturing firms in ECE countries and industry studies. When relevant and possible, the results are considered in reference to other important locations in the GPNs of the electronics and automotive sectors. The results indicate that while the economic and social aspects of manufacturing in the region have improved over time, the extent of economic and social upgrading experienced from 1995 until 2011 across the region has been relatively modest in magnitude. Even as the conditions for upgrading have been more favorable in the automotive than in the electronics sector, particularly since the integration of the ECE countries into the European Union (EU), the ECEs continue to face important challenges to acquire greater autonomy over their production activities and to reduce their value creation gap with core economies.

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Eastern Central Europe,global production networks,global value chains,economic upgrading,social upgrading,dependence

• Economics and Business - Social Sciences
• Political Science - Social Sciences