Crisis and Protection in the Automotive Industry : A Global Value Chain Perspective
In this paper the authors apply global value chain (GVC) analysis to recent trends in the global automotive industry, with special attention paid to government interventions triggered by the recent economic crisis. The authors first highlight some of the defining characteristics of GVCs in this important industry, especially the unusually strong regional structure of production and sales. National political institutions create pressure for local content, which drives production close to end markets, where it tends to be organized nationally or regionally. They then examine policy reactions to the recent economic crisis, and provide some discussion of the government interventions in the industry. The authors end with a number of policy conclusions that highlight the likely impact of the interventions on the evolution GVCs and the growth of the industry in developing countries.
| Summary: | In this paper the authors apply global
value chain (GVC) analysis to recent trends in the global
automotive industry, with special attention paid to
government interventions triggered by the recent economic
crisis. The authors first highlight some of the defining
characteristics of GVCs in this important industry,
especially the unusually strong regional structure of
production and sales. National political institutions create
pressure for local content, which drives production close to
end markets, where it tends to be organized nationally or
regionally. They then examine policy reactions to the recent
economic crisis, and provide some discussion of the
government interventions in the industry. The authors end
with a number of policy conclusions that highlight the
likely impact of the interventions on the evolution GVCs and
the growth of the industry in developing countries. |
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