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Analysis of the relevance of China’s development for main European automotive manufacturing countries

Author

Listed:
  • Andoni Maiza

    (University of the Basque Country UPV/EHU)

  • Ricardo Bustillo

    (University of the Basque Country UPV/EHU)

Abstract

This article examines the impact of China’s growth on the main EU automotive manufacturing countries during the last decade. We study to what extent China represents a significant final destination market and a major partner inside EU automakers’ international value chain, through the analysis of final and intermediate products trade flows, value added trade flows as well as intra-industry trade shares. The research evidences that, in a critical context characterised by stagnation in developed economies, Germany has attained a sharp increase in exports of domestic value added to the Chinese car market. On the contrary, the other EU countries have not succeeded in their attempt to build a stable industrial relation with China regarding the automotive sector.

Suggested Citation

  • Andoni Maiza & Ricardo Bustillo, 2018. "Analysis of the relevance of China’s development for main European automotive manufacturing countries," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(3), pages 403-424, September.
    • Handle: RePEc:spr:epolin:v:45:y:2018:i:3:d:10.1007_s40812-018-0095-z
    DOI: 10.1007/s40812-018-0095-z
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    More about this item

    Keywords

    China; EU; Automotive; Fragmentation; Trade;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F10 - International Economics - - Trade - - - General
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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