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Exploring the drivers behind automotive exports in OECD countries: An empirical analysis

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  • Jochem, Patrick
  • Schleich, Joachim

Abstract

The conceptual part of this paper ties the recently developed Lead Market concept to the international trade theory literature including neoclassical trade theory, new trade theory, neotechnological approaches and systems of innovation concepts. The empirical part explores the factors driving exports in the automotive sector in eight OECD countries between 1991 and 2008, explicitly accounting for possible Lead Market factors. Econometric results suggest that exports in the automotive sector are positively related to the general strength of a country in terms of exports, to higher GDP per capita and to a lower labour cost share in the automotive sector. However, domestic market size and R&D in the automotive sector do not exhibit statistically significant effects on exports. --

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Bibliographic Info

Paper provided by Fraunhofer Institute for Systems and Innovation Research (ISI) in its series Working Papers "Sustainability and Innovation" with number S3/2012.

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Date of creation: 2012
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Handle: RePEc:zbw:fisisi:s32012

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Keywords: lead markets; international trade; export potential; automotive industry;

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