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Strategic policy revisited: The origins of mass production in the motor industry of Argentina, Korea and Spain, 1945-87

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  • Jordi Catalan
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    Abstract

    During the postwar 'golden age' of economic growth, Argentina, Korea and Spain promoted the development of their motor industries by restricting imports, licensing investment, imposing a high level of local sourcing for parts, and supporting their own national champions. These strategic policies took advantage of economies of scale, achieving significant increases in output, and creating dynamic competitive advantage. Sudden liberalisation or the high volatility of the macroeconomic environment could jeopardise the process of structural change. Gradual evolution of policy-making and the cumulative learning of capabilities by the national champions were crucial for long-term success. The present research supports both List's classical defence of protection for infant industries in medium-large economies and more recent claims in favour of strategic policy.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Business History.

    Volume (Year): 52 (2010)
    Issue (Month): 2 ()
    Pages: 207-230

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    Handle: RePEc:taf:bushst:v:52:y:2010:i:2:p:207-230

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    Web page: http://www.tandfonline.com/FBSH20

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    Related research

    Keywords: strategic policy; automobile industry; Argentina; Korea; Spain; Hyundai; IKA; SEAT;

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    Cited by:
    1. Truett, Lila J. & Truett, Dale B., 2014. "The South Korean auto industry's path to maturity," International Review of Economics & Finance, Elsevier, vol. 31(C), pages 86-94.
    2. Tomas Fernandez-de-Sevilla, 2011. "Responses to a crisis: FASA-Renault in Spain during the 1970s," Working Papers in Economics 261, Universitat de Barcelona. Espai de Recerca en Economia.

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