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The German connection: shifting hegemony in the political economy of the South African automotive industry

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  • Justin Barnes
  • Mike Morris

Abstract

Most value chain analyses remain at an abstract level, underplaying political economy issues and the importance of local context. The paper analyses the manner in which global automotive forces (the dominance of the German assemblers and their multinational corporation first-tier suppliers) combine with local institutional influences (the government's automotive industrial policy) to drive, shape, and restructure the trajectory of the South African automotive industry under the hegemony of the 'German connection'. It shows 'how' and 'why' the German corporations, unlike their American and Japanese counterparts, were able to successfully integrate their global value chains with local institutional and policy conditions and reap the benefits. Its conclusions both add to a general understanding of how governance (power, command, control) operates within producer-driven value chains and illuminate the political economy dynamics of German control underpinning the South African automotive industry. Copyright 2004, Oxford University Press.

Suggested Citation

  • Justin Barnes & Mike Morris, 2004. "The German connection: shifting hegemony in the political economy of the South African automotive industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(5), pages 789-814, October.
    • Handle: RePEc:oup:indcch:v:13:y:2004:i:5:p:789-814
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    Citations

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    Cited by:

    1. Anthony Black, 2009. "Location, Automotive Policy, and Multinational Strategy: The Position of South Africa in the Global Industry since 1995," Growth and Change, Wiley Blackwell, vol. 40(3), pages 483-512, September.
    2. Anthony Black, 2011. "Trade Liberalization, Technical Change and Firm Level Restructuring in the South African Automotive Component Sector," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(2), pages 173-202, July.
    3. Akçomak, Ibrahim Semih & Bürken, Serkan, 2019. "The middle-technology trap: The case of the automotive industry in Turkey," MERIT Working Papers 2019-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Stephan Manning, 2008. "Customizing Clusters," Economic Development Quarterly, , vol. 22(4), pages 316-323, November.
    5. Mike Morris & Glen Robbins & Ulrich Hansen & Ivan Nygard, 2022. "The wind energy global value chain localisation and industrial policy failure in South Africa," Journal of International Business Policy, Palgrave Macmillan, vol. 5(4), pages 490-511, December.
    6. Anzolin, Guendalina & Andreoni, Antonio & Zanfei, Antonello, 2022. "What is driving robotisation in the automotive value chain? Empirical evidence on the role of FDIs and domestic capabilities in technology adoption," Technovation, Elsevier, vol. 115(C).
    7. Manning, Stephan, 2013. "New Silicon Valleys or a new species? Commoditization of knowledge work and the rise of knowledge services clusters," Research Policy, Elsevier, vol. 42(2), pages 379-390.

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