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Internationalisation of automotive industry in the Czech Republic

Author

Listed:
  • Jiří Novosák
  • Milan Damborský
  • Ivana Linhartová

Abstract

Automotive industry is one of the key branches of the Czech economy. Th ere is possible to identify regions typical of contraction of this industry in the Czech Republic, specially Mladá Boleslav region and North Moravia region. Key role of foreign direct investments contributing to the development of supplier branch was identifi ed. Mladá Boleslav region and North Moravia region are diff erent in form of main investor. Th e location of Volkswagen in Mladá Boleslav is a result of privatization process. Hyundai plant was built on greenfi eld. It caused diff erent development of these clusters. Spatial concentration process has implicated possible utilization of positive agglomeration eff ects. On the other side, unilateral direction of regional economic base is a strong threat in the period of economic crisis. Regional development strategy of North Moravia region should be determined subsequently to this knowledge. Positive eff ects of automotive industry come mostly from high wages, multiple eff ects on suppliers, and impulses for universities (see case Škoda Auto). Negative eff ects of automotive industry concentration are specially road loading and environmental pollution. Total plus or minus eff ects may diff er from case to case.

Suggested Citation

  • Jiří Novosák & Milan Damborský & Ivana Linhartová, 2010. "Internationalisation of automotive industry in the Czech Republic," Regionální studia, University of Economics, Prague, vol. 2010(1), pages 2-8.
  • Handle: RePEc:prg:jnlrst:v:2010:y:2010:i:1:id:18:p:2-8
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