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The Argentine Automotive Industry Towards The Challenge Of Opening To The Eu: Structural Changes, Business Conducts And Impacts On Sector Performance

Author

Listed:
  • Julimar Da Silva Bichara

    (Universidad Autónoma de Madrid)

  • Gonzalo A. Dalmasso

    (Universidad de Buenos Aires)

Abstract

This article provides elements for an impact scenario of the eventual Association Agreement between Mercosur and the EU on the Argentine automotive industry. It is inquired how companies would react to this shock and how it would impact sector performance, based on a survey to key industry players. It is concluded that -given the current situation of the environment- the Agreement would entail more risks than opportunities for the value chain, particularly for auto parts companies. The intensification of competition would induce changes in business behavior in terms of specialization, modernization, cooperation and sourcing. In contrast, there is skepticism that it can propitiate offensive-type adaptation strategies to take advantage of new business opportunities (exports, greenfield investments, innovations). The impact on local value added and employment would therefore be predominantly contractive.

Suggested Citation

  • Julimar Da Silva Bichara & Gonzalo A. Dalmasso, 2019. "The Argentine Automotive Industry Towards The Challenge Of Opening To The Eu: Structural Changes, Business Conducts And Impacts On Sector Performance," Revista de Economía Política de Buenos Aires, Universidad de Buenos Aires. Facultad de Ciencias Económicas., issue 19, pages 9-66, December.
  • Handle: RePEc:ake:repba1:y:2019:i:19:p:9-66
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    More about this item

    Keywords

    European Union-Mercosur negotiation; Argentine automotive industry; Structure-Conduct-Performance.;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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