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Competitive pressure on German automobile production

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  • Peter Nunnenkamp

Abstract

The production of cars as well as components and parts continues to be concentrated on the triad of advanced industrialised countries. This should not hide the fact, however, that the German automotive industry is faced with an intense competition from below in two areas: final production abroad and the international outsourcing of intermediate production. Dr. Peter Nunnenkamp of the Institute for the World Economy in Kiel shows in this article that foreign production and outsourcing are both gaining importance and that both phenomena are driven by international cost differences. Also in anticipation of the pending EU eastern enlargement, the network of intermediate production has grown more dense, and in final production, substitution effects can be increasingly observed at the expense of the automotive exports and domestic production from or in Germany.

Suggested Citation

  • Peter Nunnenkamp, 2004. "Competitive pressure on German automobile production," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 57(07), pages 28-36, April.
    • Handle: RePEc:ces:ifosdt:v:57:y:2004:i:07:p:28-36
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    File URL: https://www.ifo.de/DocDL/ifosd_2004_7_3.pdf
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    References listed on IDEAS

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    1. Nunnenkamp, Peter, 1998. "Die deutsche Automobilindustrie im Prozeß der Globalisierung," Open Access Publications from Kiel Institute for the World Economy 1790, Kiel Institute for the World Economy (IfW Kiel).
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    Cited by:

    1. Martina Fuchs, 2005. "Internationalisation of companies and local upgrading of peripheries - The Example of VW Navarre in the European automobile production system," ERSA conference papers ersa05p103, European Regional Science Association.
    2. Michael Knogler & Volkhart Vincentz, 2005. "Auswirkungen der EU-Osterweiterung auf die Arbeitsmärkte der neuen Mitgliedstaaten und der EU-15, insbesondere Deutschland," Working Papers 257, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    3. Nunnenkamp, Peter, 2004. "The German automobile industry and Central Europe's integration into the international division of labour: foreign production, intra-industry trade, and labour market repercussions," Open Access Publications from Kiel Institute for the World Economy 4318, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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