IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/52879.html
   My bibliography  Save this paper

Can the periphery achieve core? The case of the automobile components industry in Spain

Author

Listed:
  • Lampón, Jesús F.
  • Lago-Peñas, Santiago
  • Cabanelas, Pablo

Abstract

The paper analyses changes experienced by Spain, as a European Peripheral region, in the spatial concentration of value-added and high-skill activities, and generation of technology in the automobile components industry. The analysis of plants set up (investments) and relocated (divestments) by multinationals (MNEs) between 2001 and 2010 show that Spain is no longer a place for labour-intensive activities and standardized processes using simple technologies in comparison to other peripheral regions. However, the continuing majority presence of foreign-owned companies is limiting decision power for generating and transferring technology, concentrating it mainly in those which Spanish MNEs have specialised

Suggested Citation

  • Lampón, Jesús F. & Lago-Peñas, Santiago & Cabanelas, Pablo, 2013. "Can the periphery achieve core? The case of the automobile components industry in Spain," MPRA Paper 52879, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:52879
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/52879/1/MPRA_paper_52879.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Okubo, Toshihiro & Tomiura, Eiichi, 2012. "Industrial relocation policy, productivity and heterogeneous plants: Evidence from Japan," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 230-239.
    2. Belussi, Fiorenza & Sammarra, Alessia & Sedita, Silvia Rita, 2010. "Learning at the boundaries in an "Open Regional Innovation System": A focus on firms' innovation strategies in the Emilia Romagna life science industry," Research Policy, Elsevier, vol. 39(6), pages 710-721, July.
    3. Vincent Frigant, 2009. "Winners and Losers in the Auto Parts Industry: Trajectories Followed by the Main First Tier Suppliers Over the Past Decade," Palgrave Macmillan Books, in: Michel Freyssenet (ed.), The Second Automobile Revolution, chapter 22, pages 419-442, Palgrave Macmillan.
    4. Giorgio Barba Navaretti & Anna Falzoni & Alessandro Turrini, 2001. "The decision to invest in a low-wage country: Evidence from Italian textiles and clothing multinationals," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(4), pages 451-470.
    5. James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, December.
    6. Wan-Wen Chu, 2011. "How the Chinese government promoted a global automobile industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(5), pages 1235-1276, October.
    7. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
    8. Yannick Lung, 2004. "The changing geography of the European automobile system," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 4(2/3), pages 137-165.
    9. Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-1175, September.
    10. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    11. Jaya Prakash Pradhan, 2004. "The determinants of outward foreign direct investment: a firm-level analysis of Indian manufacturing," Oxford Development Studies, Taylor & Francis Journals, vol. 32(4), pages 619-639.
    12. Michael Storper & Anthony J. Venables, 2004. "Buzz: face-to-face contact and the urban economy," Journal of Economic Geography, Oxford University Press, vol. 4(4), pages 351-370, August.
    13. repec:dau:papers:123456789/1877 is not listed on IDEAS
    14. Asheim, Bjorn T & Isaksen, Arne, 2002. "Regional Innovation Systems: The Integration of Local 'Sticky' and Global 'Ubiquitous' Knowledge," The Journal of Technology Transfer, Springer, vol. 27(1), pages 77-86, January.
    15. René Belderbos & Jianglei Zou, 2006. "Foreign Investment, Divestment and Relocation by Japanese Electronics Firms in East Asia," Asian Economic Journal, East Asian Economic Association, vol. 20(1), pages 1-27, March.
    16. Ugo Ibusuki & Hideo Kobayashi & Paulo Carlos Kaminski, 2012. "Localisation of product development based on competitive advantage of location and government policies: a case study of car makers in Brazil," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 12(2), pages 172-196.
    17. Jean-Bernard LAYAN & Jean-Bernard LAYAN, 2007. "Les Nouvelles Configurations De L Espace Automobile Méditerranéen," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 25, pages 157-176.
    18. Morosini, Piero, 2004. "Industrial Clusters, Knowledge Integration and Performance," World Development, Elsevier, vol. 32(2), pages 305-326, February.
    19. Pennings, Enrico & Sleuwaegen, Leo, 2000. "International relocation: firm and industry determinants," Economics Letters, Elsevier, vol. 67(2), pages 179-186, May.
    20. Masahisa Fujita & Jacques-François Thisse, 2006. "Globalization And The Evolution Of The Supply Chain: Who Gains And Who Loses?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(3), pages 811-836, August.
    21. Jozef Konings & Alan Patrick Murphy, 2006. "Do Multinational Enterprises Relocate Employment to Low-Wage Regions? Evidence from European Multinationals," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(2), pages 267-286, July.
    22. Yannick Lung & Jorge Carrillo & Rob van Tulder, 2004. "Cars, Carriers of regionalism?," Post-Print hal-00248180, HAL.
    23. Richard E. Baldwin & Philippe Martin & Gianmarco I. P. Ottaviano, 2021. "Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 2, pages 25-57, World Scientific Publishing Co. Pte. Ltd..
    24. repec:ilo:ilowps:359966 is not listed on IDEAS
    25. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    26. Humphrey, John,, 2003. "Opportunities for SMEs in developing countries to upgrade in a global economy," ILO Working Papers 993599663402676, International Labour Organization.
    27. Leo Sleuwaegen & Enrico Pennings, 2006. "International Relocation Of Production: Where Do Firms Go?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(4), pages 430-446, September.
    28. Timothy Sturgeon & Johannes Van Biesebroeck & Gary Gereffi, 2008. "Value chains, networks and clusters: reframing the global automotive industry," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 297-321, May.
    29. Yannick Lung & Jean-Bernard Layan, 2008. "Attractivité et agglomération de l'industrie automobile au Maroc et en Tunisie : une analyse comparative," Post-Print hal-00387576, HAL.
    30. Laura Resmini, 2000. "The Determinants of Foreign Direct Investment in the CEECs: New evidence from sectoral patterns," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(3), pages 665-689, November.
    31. Ana Salomé García Muñiz & Antonio Morillas Raya & Carmen Ramos Carvajal, 2011. "Core periphery valued models in input‐output field: A scope from network theory," Papers in Regional Science, Wiley Blackwell, vol. 90(1), pages 111-121, March.
    32. Meric S. Gertler, 2003. "Tacit knowledge and the economic geography of context, or The undefinable tacitness of being (there)," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 75-99, January.
    33. Edward E. Leamer, 2007. "A Flat World, a Level Playing Field, a Small World After All, or None of the Above? A Review of Thomas L Friedman's The World is Flat," Journal of Economic Literature, American Economic Association, vol. 45(1), pages 83-126, March.
    34. Thomas Kemeny, 2011. "Are international technology gaps growing or shrinking in the age of globalization?," Journal of Economic Geography, Oxford University Press, vol. 11(1), pages 1-35, January.
    35. Yannick Lung & Boleslaw Domanski, 2009. "The changing face of the European periphery in the automotive industry," Post-Print hal-00388014, HAL.
    36. Aleid E. Brouwer & Ilaria Mariotti & Jos N. van Ommeren, 2004. "The firm relocation decision: An empirical investigation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 335-347, June.
    37. El Mouhoub Mouhoud, 2017. "Mondialisation et délocalisation des entreprises," Post-Print hal-01874196, HAL.
    38. Richard R. Nelson, 2007. "The changing institutional requirements for technological and economic catch up," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(1), pages 4-12.
    39. Jean-Jacques Chanaron, 2004. "Relationships between the core and the periphery of the European automotive system," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 4(2/3), pages 198-222.
    40. Jerker Moodysson & Lars Coenen & Bjørn Asheim, 2008. "Explaining Spatial Patterns of Innovation: Analytical and Synthetic Modes of Knowledge Creation in the Medicon Valley Life-Science Cluster," Environment and Planning A, , vol. 40(5), pages 1040-1056, May.
    41. Sriram Dasu & Lode Li, 1997. "Optimal Operating Policies in the Presence of Exchange Rate Variability," Management Science, INFORMS, vol. 43(5), pages 705-722, May.
    42. Vincent Frigant & Jean-Bernard Layan, 2009. "Modular production and the new division of labour within Europe: the perspective of French automotive parts suppliers," Post-Print hal-00381341, HAL.
    43. Bruce Kogut & Nalin Kulatilaka, 1994. "Operating Flexibility, Global Manufacturing, and the Option Value of a Multinational Network," Management Science, INFORMS, vol. 40(1), pages 123-139, January.
    44. Thomas Klier & James Rubenstein, 2008. "Who Really Made Your Car? Restructuring and Geographic change in the Auto Industry," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wrmyc, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rongjun Long & Wei Lang & Xun Li, 2020. "Does Institutional Embeddedness Promote Regional Enterprises’ Migration? An Empirical Analysis Based on the “Double Transfer” Strategy in Guangdong, China," Sustainability, MDPI, vol. 12(7), pages 1-21, April.
    2. Lampón, Jesús F., 2019. "Relocation in conditions of uncertainty: the Spanish automobile components industry during the economic crisis (2008-2012)," MPRA Paper 92738, University Library of Munich, Germany.
    3. Yang, Bo & Liu, Baozhen & Peng, Jiachao & Liu, Xujun, 2022. "The impact of the embedded global value chain position on energy-biased technology progress: Evidence from chinas manufacturing," Technology in Society, Elsevier, vol. 71(C).
    4. Jesús F. Lampón, 2020. "The impact of uncertainty on production relocation: Implications from a regional perspective," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 427-446, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lampón, Jesús F., 2019. "Relocation in conditions of uncertainty: the Spanish automobile components industry during the economic crisis (2008-2012)," MPRA Paper 92738, University Library of Munich, Germany.
    2. Jesús F. Lampón, 2020. "The impact of uncertainty on production relocation: Implications from a regional perspective," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 427-446, June.
    3. Jesús F. Lampón & Pablo Cabanelas-Lorenzo & Santiago Lago-Peñas, 2013. "Why firms relocate their production overseas? The answer lies inside: corporate, logistic and technological determinants," Working Papers 2013/3, Institut d'Economia de Barcelona (IEB).
    4. Jesús F. Lampón & Santiago Lago-Peñas, 2013. "Factors behind international relocation and changes in production geography in the European automobile components industry," Working Papers 2013/16, Institut d'Economia de Barcelona (IEB).
    5. Jesús F. Lampón & Pablo Cabanelas-Lorenzo & Santiago Lago-Peñas, 2013. "Why firms relocate their production overseas? The answer lies inside: corporate, logistic and technological determinants," Working Papers 2013/3, Institut d'Economia de Barcelona (IEB).
    6. Lampón, Jesús F. & Lago-Peñas, Santiago, 2013. "Factors behind international relocation and changes in production geography in the European automobile components industry," MPRA Paper 45659, University Library of Munich, Germany.
    7. Petr Pavlínek, 2012. "The Internationalization of Corporate R&D and the Automotive Industry R&D of East-Central Europe," Economic Geography, Clark University, vol. 88(3), pages 279-310, July.
    8. Lampón, Jesús F. & Cabanelas, Pablo & Carballo-Cruz, Francisco, 2017. "A model for international production relocation: Multinationals' operational flexibility and requirements at production plant level," Journal of Business Research, Elsevier, vol. 77(C), pages 95-101.
    9. Vincent Frigant & Stéphane Miollan, 2014. "The Geographical Restructuring of the European Automobile Industry in the 2000s," Working Papers hal-02150630, HAL.
    10. Petr Pavlínek & Pavla Žížalová, 2016. "Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry," Journal of Economic Geography, Oxford University Press, vol. 16(2), pages 331-363.
    11. Vincent FRIGANT & Stéphane MIOLLAN, 2014. "La restructuration de la géographie de l’industrie automobile en Europe durant les années 2000," Cahiers du GREThA (2007-2019) 2014-02, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    12. Vincent FRIGANT & Martin ZUMPE, 2014. "The persistent heterogeneity of trade patterns: A comparison of four European Automotive Global Production Networks," Cahiers du GREThA (2007-2019) 2014-24, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    13. Frigant, Vincent & Zumpe, Martin, 2014. "Are automotive global production networks becoming more global? Comparison of regional and global integration processes based on auto parts trade data," MPRA Paper 55727, University Library of Munich, Germany.
    14. Vincent FRIGANT, 2011. "French mega-suppliers’ trajectories during the modular era: some evidences on Faurecia, Valeo and Plastic Omnium," Cahiers du GREThA (2007-2019) 2011-20, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    15. Martin Borowiecki & Bernhard Dachs & Doris Hanzl-Weiss & Steffen Kinkel & Johannes Pöschl & Magdolna Sass & Thomas Christian Schmall & Robert Stehrer & Andrea Szalavetz, 2012. "Global Value Chains and the EU Industry," wiiw Research Reports 383, The Vienna Institute for International Economic Studies, wiiw.
    16. Frigant, Vincent, 2014. "Une comparaison de la fragmentation internationale des chaînes d’approvisionnement automobiles allemande et française," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 15.
    17. Thomas Klier & Daniel McMillen, 2015. "Plant Location Patterns in the European Automobile Supplier Industry," Growth and Change, Wiley Blackwell, vol. 46(4), pages 558-573, December.
    18. Vincent Frigant, 2015. "Beyond The Business Case and Sustainable chain management: Why Do We Need to Build a Theory of Interfirm Social Responsability?," Post-Print hal-01426819, HAL.
    19. Vincent FRIGANT, 2013. "Une comparaison de l’internationalisation des chaînes d’approvisionnement automobiles allemande et française," Cahiers du GREThA (2007-2019) 2013-09, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    20. Marie Coris & Vincent Frigant & Jean-Bernard Layan & Damien Talbot, 2011. "Les dynamiques spatiales des activités productives," Post-Print hal-02385445, HAL.

    More about this item

    Keywords

    production geography; relocation; automobile components industry; periphery; multinationals;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:52879. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.