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Industrial upgrading in global production networks: the case of the Chinese automotive industry

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  • Yan Sheng Li
  • Xin Xin Kong
  • Miao Zhang

Abstract

This article examines the development of China's automotive industry. The evidence shows that integration in global production networks has stimulated upgrading of technological capabilities among automotive firms. However, the competitiveness and intra-industry analyses show mixed results. Although intra-industry trade in automotive products has improved since 2000, the trade competitiveness of completely built-up vehicles has largely remained in low value-added activities. Nevertheless, firm-level evidence shows that the industry has undergone considerable upgrading, albeit in low value-added activities. Trade integration and host-country institutional support have been the prime driving forces of technological upgrading in the automotive industry in China.

Suggested Citation

  • Yan Sheng Li & Xin Xin Kong & Miao Zhang, 2016. "Industrial upgrading in global production networks: the case of the Chinese automotive industry," Asia Pacific Business Review, Taylor & Francis Journals, vol. 22(1), pages 21-37, January.
  • Handle: RePEc:taf:apbizr:v:22:y:2016:i:1:p:21-37
    DOI: 10.1080/13602381.2014.990203
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    1. World Bank, 2013. "World Development Indicators 2013," World Bank Publications, The World Bank, number 13191, November.
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    Cited by:

    1. Xiaofei Chen & Enru Wang & Changhong Miao & Lili Ji & Shaoqi Pan, 2020. "Industrial Clusters as Drivers of Sustainable Regional Economic Development? An Analysis of an Automotive Cluster from the Perspective of Firms’ Role," Sustainability, MDPI, Open Access Journal, vol. 12(7), pages 1-22, April.
    2. Casson, Mark & Wadeson, Nigel, 2018. "Emerging market multinationals and internalisation theory," International Business Review, Elsevier, vol. 27(6), pages 1150-1160.
    3. Andrey A. Gnidchenko, 2018. "Measuring product-level export quality: Evidence from Asian motor vehicles sector," FIW Working Paper series 185, FIW.

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