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Transportation Infrastructure or Economic Power? Development of the Automobile Industry in the United States

Author

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  • Young-Kyou Ha

    (Department of International Logistics, Chung-Ang University, Seoul 06911, Korea)

  • Su-Han Woo

    (Department of International Logistics, Chung-Ang University, Seoul 06911, Korea)

Abstract

The motive for the Korean automobile industry’s US investment is the easing of trade regulations and managing a stable supply chain by establishing local production. The Korean automobile industry has undergone major changes due to strong trade regulations since the beginning of the Trump administration and the COVID-19 pandemic. This has affected parts production, procurement, and automobile manufacturing and shaken the foundation of the automobile industry supply chain. The purpose of this study is to provide implications for additional investment decisions by analyzing the impact of the US industry and economy on the success of the automobile industry if Korean automobile companies advance into the US. This study conducted panel analysis by collecting 10 years of data to investigate the impact of economic, industrial, and infrastructure factors in each state on the success of the automobile industry. This study reflected the characteristics and investment motivation of the automobile industry. The study findings revealed that an export-oriented industrial area is suitable for strategic investment rather than a region where the economy is simply large or where all industries are developed. In addition, when making investment decisions, it is important to prioritize the internal capabilities of the company rather than external factors.

Suggested Citation

  • Young-Kyou Ha & Su-Han Woo, 2022. "Transportation Infrastructure or Economic Power? Development of the Automobile Industry in the United States," Sustainability, MDPI, vol. 14(3), pages 1-11, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:3:p:1649-:d:739317
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    References listed on IDEAS

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    1. Boysen, Nils & Emde, Simon & Hoeck, Michael & Kauderer, Markus, 2015. "Part logistics in the automotive industry: Decision problems, literature review and research agenda," European Journal of Operational Research, Elsevier, vol. 242(1), pages 107-120.
    2. Boysen, Nils & Emde, Simon & Hoeck, Michael & Kauderer, Markus, 2015. "Part logistics in the automotive industry: Decision problems, literature review and research agenda," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 79443, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. Frank Chen & Zvi Drezner & Jennifer K. Ryan & David Simchi-Levi, 2000. "Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information," Management Science, INFORMS, vol. 46(3), pages 436-443, March.
    4. Matthias Holweg & Joe Miemczyk, 2003. "Delivering the ‘3-day car’—the strategic implications for automotive logistics operations," Post-Print hal-01118747, HAL.
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    Cited by:

    1. Surbhi Upadhyay & Suresh Kumar Garg & Rishu Sharma, 2023. "Analyzing the Factors for Implementing Make-to-Order Manufacturing System," Sustainability, MDPI, vol. 15(13), pages 1-22, June.

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