not if there's a fence/wall between them.
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i upgraded according to the number of troop units in my farming army. my original order was:
archers (60 units) --> giants (50 units) --> goblins (50 units) --> barbs (20 units) --> wallbreakers (20 units)
i'd follow the same order again, even though i use more barbs now than goblins, simply because level 5 goblins make storages "pop."
for lvl 6 ugprades, i'll likely go giants --> barbs --> archers, simply because of the costs vs. stat upgrades.