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Effects of the crisis on the automotive industry in developing countries : a global value chain perspective

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  • Sturgeon, Timothy J.
  • Van Biesebroeck, Johannes

Abstract

This paper applies global value chain analysis to study recent trends in the global automotive industry. The authors pay special attention to the effects of the recent economic crisis on the industry in developing countries. The principal finding is that the crisis has accelerated pre-crisis trends toward greater importance of the industry in the South. More rapid growth of car ownership is the impetus, but the co-location and close interaction of suppliers and lead firms in this industry is an important catalyst. Opportunities to move up in the value chain for suppliers in emerging economies have proliferated and are likely to become even stronger now that an increasing number of new models are developed specifically for markets in developing countries. The co-location of assembly and parts plants in national and regional production systems has largely confined the impact of sales declines during the crisis to each country/region. In addition, the different development strategies followed by countries like Mexico, China, and India are slowly converging as their industries gain size and independence.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5330.

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Date of creation: 01 Jun 2010
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Handle: RePEc:wbk:wbrwps:5330

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

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  1. 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, Oxford University Press, vol. 8(3), pages 297-321, May.
  2. Sturgeon, Timothy J. & Van Biesebroeck, Johannes, 2009. "Crisis and protection in the automotive industry : a global value chain perspective," Policy Research Working Paper Series 5060, The World Bank.
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Cited by:
  1. Annamaria Nifo & Domenico Scalera, 2011. "Structural Changes in Italian Industry: The Impact of Crisis. A Comment on the Book Edited by Laura Rondi and Francesco Silva," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, Associazione Rossi Doria, issue 2, June.
  2. Francesca Barbiero & Michael Blanga-Gubbay & Valeria Cipollone & Koen De Backer & Sébastien Miroudot & Alexandros Ragoussis & André Sapir & Reinhilde Veugelers & Erkki Vihriälä & Guntram B, . "Manufacturing Europeâ??s future," Blueprints, Bruegel, number 795, December.
  3. TUNCEL, Cem Okan, 2012. "Sectoral System of Innovation and Exploring Technological Upgrading Strategies in Late-Industrializing Countries," MPRA Paper 40843, University Library of Munich, Germany.

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