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Central and Eastern Europe’s dependent development in German automotive value chains

Author

Listed:
  • Tamas Gerocs

    (Institute of World Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences)

  • Andras Pinkasz

    (Hungarian Central Statistical Office)

Abstract

For several decades, the German automotive industry has been under mounting pressure to reorganize its production processes and its modes of value-chain governance. In this paper, we analyze the effects this restructuring has had on the economic development of the Central and Eastern European countries that have specialized in automotive production during the capitalist transition. We focus on two global market forces: the standardization of the production of electric engines and the changing patterns of international trade regulation, mostly under the German neo-mercantilist trade regime. Our hypothesis is that structures of dependent development are reproduced by the forms of vertical specialization that have emerged in the automotive industry in these countries. To prove this, we combine the theory of global value chains with Vernon’s product life-cycle theory.

Suggested Citation

  • Tamas Gerocs & Andras Pinkasz, 2019. "Central and Eastern Europe’s dependent development in German automotive value chains," IWE Working Papers 253, Institute for World Economics - Centre for Economic and Regional Studies.
  • Handle: RePEc:iwe:workpr:253
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    File URL: https://vgi.krtk.hu/publikacio/no-253-2019-05/
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    More about this item

    Keywords

    core-periphery; dependent development; global automotive value chains; product life cycle; relocation; vertical specialization;
    All these keywords.

    JEL classification:

    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • F6 - International Economics - - Economic Impacts of Globalization
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations

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