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The Motor Vehicles Industry in Slovakia, 2005 – 2015

Author

Listed:
  • Biswajit Banerjee

    (National Bank of Slovakia and Ashoka University, Sonepa and Research and Information System (RIS) for Developing Countries)

  • Juraj Zeman

    (National Bank of Slovakia, Research Department)

Abstract

This paper examines the evolution of the Slovak motor vehicles sector during 2005 – 2015, drawing on the latest update (December 2018) of OECD’s Inter-Country Input-Output (ICIO) model database. The review takes a global value chain (GVC) approach and looks at the linkages from the gross production and value-added perspectives. The overall contribution of the motor vehicles sector to Slovakia’s gross production and domestic value added increased twofold during the reference period. There was an ongoing change in the structure of the GVC linkages. The reliance on domestically-sourced inputs increased over the years. The (indirect) value added created in the production of domestically-sourced inputs gradually approached the level of the (direct) value added generated within the motor vehicles sector. Subsequent to the global financial crisis, the share of intermediate goods in exports, the forward linkage of the GVC, and the upstreamness of the production process were all on a rising trend. The sourcing pattern of imports of intermediate inputs and the market for exports steadily shifted away from the euro area towards non-EU countries. It is estimated that a hypothetical 10 percent negative shock to global final demand for motor vehicles would lower Slovak GDP growth by 1 percentage point.

Suggested Citation

  • Biswajit Banerjee & Juraj Zeman, 2022. "The Motor Vehicles Industry in Slovakia, 2005 – 2015," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 70(4), pages 307-332, April.
    • Handle: RePEc:sav:journl:v:70:y:2022:i:4:p:307-332
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    backward linkage; forward linkage; GVC participation rate; length of GVC; position in GVC;
    All these keywords.

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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