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Crisis and protection in the automotive industry : a global value chain perspective

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Author Info

  • Sturgeon, Timothy J.
  • Van Biesebroeck, Johannes

Abstract

In this paper the authors apply global value chain (GVC) analysis to recent trends in the global automotive industry, with special attention paid to government interventions triggered by the recent economic crisis. The authors first highlight some of the defining characteristics of GVCs in this important industry, especially the unusually strong regional structure of production and sales. National political institutions create pressure for local content, which drives production close to end markets, where it tends to be organized nationally or regionally. They then examine policy reactions to the recent economic crisis, and provide some discussion of the government interventions in the industry. The authors end with a number of policy conclusions that highlight the likely impact of the interventions on the evolution GVCs and the growth of the industry in developing countries.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5060.

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Date of creation: 01 Sep 2009
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Handle: RePEc:wbk:wbrwps:5060

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Related research

Keywords: Markets and Market Access; Economic Theory&Research; Labor Policies; Water and Industry; Debt Markets;

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  1. Caballero, Ricardo J & Hammour, Mohamad L, 1994. "The Cleansing Effect of Recessions," American Economic Review, American Economic Association, American Economic Association, vol. 84(5), pages 1350-68, December.
  2. Steven Klepper, 2002. "Firm Survival and the Evolution of Oligopoly," RAND Journal of Economics, The RAND Corporation, vol. 33(1), pages 37-61, Spring.
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Cited by:
  1. Sturgeon, Timothy J. & Van Biesebroeck, Johannes, 2010. "Effects of the crisis on the automotive industry in developing countries : a global value chain perspective," Policy Research Working Paper Series 5330, The World Bank.

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