Understanding the Changing Geography of Labour-Intensive Industries from a GPN Perspective: Case Study of the Hungarian Leather and Footwear Sector

Labour-intensive industries have declined in the East Central European economy after the beginning of the millennium. Given this deterioration, significant employers are vanishing from rural areas, leaving behind serious employment problems in regions which are less capable of resilient restructuring. This article examines this shrinkage from a geographical aspect in the context of the Hungarian leather and footwear industry. This study focuses on the interpretation and explanation of the spatial differentiation that accompanies this shrinking process. The aim of this paper is to reveal the influencing factors that stand in the background of spatially uneven development. The analysis – embedded in the theoretical framework of global production networks – is based on the corporate database of the Hungarian Central Statistical Office and invokes the experience of interviews carried out with representatives of industrial actors as well. In addition to an understanding of spatial processes, the intention of the authors was to investigate the issues to be addressed in certain locations and under what conditions the long-standing industrial culture related to the sector can be preserved.