IDEAS home Printed from https://ideas.repec.org/p/grt/wpegrt/2014-09.html
   My bibliography  Save this paper

Are automotive Global Production Networks becoming more global? Comparison of regional and global integration processes based on auto parts trade data

Author

Listed:
  • Vincent FRIGANT
  • Martin ZUMPE

Abstract

In this paper, we examine the evolution of international exchanges of auto parts over the 2000-2012 period. The first part of our study proposes an analysis of the organisation of automotive supply chains based on the global production networks framework. We give details about this approach by stating the nature of trade flows that occur in these networks, and by highlighting the importance of intra-firms flows. The second part poses the question of reasons for an eventual increase of intercontinental flows at the expense of intra-continental flows. In the third part, we evaluate the assumptions made in this context. On the basis of Chelem data about auto parts exchanges, we examine in a comparative way the evolution of intra-continental and intercontinental flows for nine zones of regional integration that cover the world’s entire set of countries. Our results highlight the heterogeneity of situations and of trajectories in the different zones. We explain this state of affairs by the history and the trajectory of the industrial actors, by institutional opportunities/constraints, and by the balance of power between the industries engaged in the setting up of automotive production networks.

Suggested Citation

  • Vincent FRIGANT & Martin ZUMPE, 2014. "Are automotive Global Production Networks becoming more global? Comparison of regional and global integration processes based on auto parts trade data," Cahiers du GREThA (2007-2019) 2014-09, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
  • Handle: RePEc:grt:wpegrt:2014-09
    as

    Download full text from publisher

    File URL: http://cahiersdugretha.u-bordeaux.fr/2014/2014-09.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Giuseppe Volpato, 2004. "The OEM-FTS relationship in automotive industry," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 4(2/3), pages 166-197.
    2. Vincent Frigant, 2009. "Winners and Losers in the Auto Parts Industry: Trajectories Followed by the Main First Tier Suppliers Over the Past Decade," Palgrave Macmillan Books, in: Michel Freyssenet (ed.), The Second Automobile Revolution, chapter 22, pages 419-442, Palgrave Macmillan.
    3. Vincent Frigant & Yannick Lung, 2002. "Geographical proximity and supplying relationships in modular production," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 26(4), pages 742-755, December.
    4. Josh Whitford & Aldo Enrietti, 2005. "Surviving the Fall of a King: The Regional Institutional Implications of Crisis at Fiat Auto," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 29(4), pages 771-795, December.
    5. Baldwin, Richard & Venables, Anthony J., 2013. "Spiders and snakes: Offshoring and agglomeration in the global economy," Journal of International Economics, Elsevier, vol. 90(2), pages 245-254.
    6. Petr Pavlínek, 2012. "The Internationalization of Corporate R&D and the Automotive Industry R&D of East-Central Europe," Economic Geography, Clark University, vol. 88(3), pages 279-310, July.
    7. John Humphrey & Mario Sergio Salerno, 2000. "Globalisation and Assembler-Supplier Relations: Brazil and India," Palgrave Macmillan Books, in: John Humphrey & Yveline Lecler & Mario Sergio Salerno (ed.), Global Strategies and Local Realities, chapter 7, pages 149-175, Palgrave Macmillan.
    8. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
    9. Gary Herrigel, 2004. "Emerging Strategies and Forms of Governance in High-Wage Component Manufacturing Regions," Industry and Innovation, Taylor & Francis Journals, vol. 11(1-2), pages 45-79.
    10. Marie-Claude Belis-Bergouignan & Gerard Bordenave & Yannick Lung, 2000. "Global Strategies in the Automobile Industry," Regional Studies, Taylor & Francis Journals, vol. 34(1), pages 41-53.
    11. Yveline Lecler, 2002. "The cluster role in the development of the Thai car industry," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 26(4), pages 799-814, December.
    12. Emanuele Bacchiocchi & Massimo Florio & Anna Giunta, 2014. "Internationalization and industrial districts: evidence from the Italian automotive supply chain," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(1), pages 1-21, January.
    13. Cabigiosu, Anna & Zirpoli, Francesco & Camuffo, Arnaldo, 2013. "Modularity, interfaces definition and the integration of external sources of innovation in the automotive industry," Research Policy, Elsevier, vol. 42(3), pages 662-675.
    14. David Sadler, 1999. "Internationalization and Specialization in the European Automotive Components Sector: Implications for the Hollowing-out Thesis," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 109-119.
    15. Jean-Jacques Chanaron, 2013. "The evolution of relationships between car manufacturers and France-based component suppliers in the context of deep crisis and accelerating technological change," Post-Print halshs-00941326, HAL.
    16. Cristina Castelli & Massimo Florio & Anna Giunta, 2011. "How to cope with the global value chain: lessons from Italian automotive suppliers," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 11(3), pages 236-253.
    17. Jean-Bernard LAYAN & Jean-Bernard LAYAN, 2007. "Les Nouvelles Configurations De L Espace Automobile Méditerranéen," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 25, pages 157-176.
    18. Jorge Carrillo & Yannick Lung & Rob Tulder (ed.), 2004. "Cars, Carriers of Regionalism?," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-52385-2, Januario-.
    19. Ho Kim, 2005. "The Locational and Functional Behavior of U.S. Autoparts Suppliers," Small Business Economics, Springer, vol. 24(1), pages 79-95, February.
    20. Lyra J. Colfer & Carliss Y. Baldwin, 2010. "The Mirroring Hypothesis: Theory, Evidence and Exceptions," Harvard Business School Working Papers 10-058, Harvard Business School, revised Jun 2010.
    21. Adelheid Holl & Rafael Pardo & Ruth Rama, 2010. "Just-in-Time Manufacturing Systems, Subcontracting and Geographic Proximity," Regional Studies, Taylor & Francis Journals, vol. 44(5), pages 519-533.
    22. Maria Chiarvesio & Eleonora Maria & Stefano Micelli, 2013. "Sourcing from Northern and Southern Countries: The Global Value Chain Approach Applied to Italian SMEs," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 20(3), pages 389-404, November.
    23. Yannick Lung & Jorge Carrillo & Rob van Tulder, 2004. "Cars, Carriers of regionalism?," Post-Print hal-00248180, HAL.
    24. Thomas Klier & Daniel P. McMillen, 2008. "Evolving Agglomeration In The U.S. Auto Supplier Industry," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 245-267, February.
    25. Timothy Sturgeon & Johannes Van Biesebroeck & Gary Gereffi, 2008. "Value chains, networks and clusters: reframing the global automotive industry," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 297-321, May.
    26. Peter Dicken & Anders Malmberg, 2001. "Firms in Territories: A Relational Perspective," Economic Geography, Taylor & Francis Journals, vol. 77(4), pages 345-363, October.
    27. Yannick Lung, 2000. "Is the Rise of Emerging Countries as Automobile Producers an Irreversible Phenomenon?," Palgrave Macmillan Books, in: John Humphrey & Yveline Lecler & Mario Sergio Salerno (ed.), Global Strategies and Local Realities, chapter 2, pages 16-41, Palgrave Macmillan.
    28. Attila Havas, 2000. "Changing Patterns of Inter- and Intra- Regional Division of Labour: Central Europe’s Long and Winding Road," Palgrave Macmillan Books, in: John Humphrey & Yveline Lecler & Mario Sergio Salerno (ed.), Global Strategies and Local Realities, chapter 10, pages 234-262, Palgrave Macmillan.
    29. Thomas H. Klier & Daniel P. McMillen, 2013. "Agglomeration in the European Automobile Supplier Industry," Working Paper Series WP-2013-15, Federal Reserve Bank of Chicago.
    30. Frigant, Vincent & Miollan, Stéphane, 2014. "The geographical restructuring of the European automobile industry in the 2000s," MPRA Paper 53509, University Library of Munich, Germany.
    31. Milberg,William & Winkler,Deborah, 2013. "Outsourcing Economics," Cambridge Books, Cambridge University Press, number 9781107026995.
    32. Vincent Frigant, 2011. "Egyptian pyramid or Aztec pyramid: How should we describe the industrial architecture of automotive supply chains in Europe?," Post-Print hal-00652287, HAL.
    33. Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Global production networks: realizing the potential," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 271-295, May.
    34. Lampón, Jesús F. & Lago-Peñas, Santiago, 2013. "Factors behind international relocation and changes in production geography in the European automobile components industry," MPRA Paper 45659, University Library of Munich, Germany.
    35. François Fulconis & Laurence Saglietto & Gilles Paché, 2007. "Strategy dynamics in the logistics industry: a transactional center perspective," Post-Print hal-02304292, HAL.
    36. Vincent FRIGANT, 2011. "Egyptian pyramid or Aztec pyramid: How should we describe the industrial architecture of automotive supply chains in Europe?," Cahiers du GREThA (2007-2019) 2011-27, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    37. Jorge Carrillo, 2004. "Transnational Strategies and Regional Development: The Case of GM and Delphi in Mexico," Industry and Innovation, Taylor & Francis Journals, vol. 11(1-2), pages 127-153.
    38. Petr Pavlínek, 2012. "The Internationalization of Corporate R&D and the Automotive Industry R&D of East-Central Europe," Economic Geography, Taylor & Francis Journals, vol. 88(3), pages 279-310, July.
    39. Jean-Jacques Chanaron, 2013. "The evolution of relationships between car manufacturers and France-based component suppliers in the context of deep crisis and accelerating technical change," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 13(4), pages 320-337.
    40. Koïchi Shimokawa, 2004. "ASEAN: Developing a Division of Labour in a Developing Region," Palgrave Macmillan Books, in: Jorge Carrillo & Yannick Lung & Rob Tulder (ed.), Cars, Carriers of Regionalism?, chapter 9, pages 139-156, Palgrave Macmillan.
    41. David Morris & Tom Donnelly, 2006. "Are there market limits to modularisation?," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 6(3), pages 262-275.
    42. Ernst, Dieter & Kim, Linsu, 2002. "Global production networks, knowledge diffusion, and local capability formation," Research Policy, Elsevier, vol. 31(8-9), pages 1417-1429, December.
    43. yveline Lecler, 2002. "The cluster role in the development of the Thai car industry," Post-Print halshs-00431002, HAL.
    44. Thomas Klier & James Rubenstein, 2008. "Who Really Made Your Car? Restructuring and Geographic change in the Auto Industry," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wrmyc, july-dece.
    45. Tod Rutherford & John Holmes, 2008. "'The flea on the tail of the dog': power in global production networks and the restructuring of Canadian automotive clusters," Journal of Economic Geography, Oxford University Press, vol. 8(4), pages 519-544, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vincent FRIGANT & Martin ZUMPE, 2014. "The persistent heterogeneity of trade patterns: A comparison of four European Automotive Global Production Networks," Cahiers du GREThA (2007-2019) 2014-24, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vincent FRIGANT & Martin ZUMPE, 2014. "The persistent heterogeneity of trade patterns: A comparison of four European Automotive Global Production Networks," Cahiers du GREThA (2007-2019) 2014-24, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    2. Vincent Frigant & Stéphane Miollan, 2014. "The Geographical Restructuring of the European Automobile Industry in the 2000s," Working Papers hal-02150630, HAL.
    3. Vincent FRIGANT & Stéphane MIOLLAN, 2014. "La restructuration de la géographie de l’industrie automobile en Europe durant les années 2000," Cahiers du GREThA (2007-2019) 2014-02, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    4. Vincent FRIGANT & Stéphanie PERES & Stéphane VIROL, 2012. "How do SMEs to rise at the top of the supply chain? An econometric exploration of the French auto industry (In French)," Cahiers du GREThA (2007-2019) 2012-16, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    5. Vincent FRIGANT, 2011. "French mega-suppliers’ trajectories during the modular era: some evidences on Faurecia, Valeo and Plastic Omnium," Cahiers du GREThA (2007-2019) 2011-20, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    6. Vincent FRIGANT, 2007. "Between Internationalisation and Proximity: the internationalisation process of automotive first tier suppliers," Cahiers du GREThA (2007-2019) 2007-13, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    7. Petr Pavlínek & Pavla Žížalová, 2016. "Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry," Journal of Economic Geography, Oxford University Press, vol. 16(2), pages 331-363.
    8. Petr Pavlínek & Jan Ženka, 2016. "Value creation and value capture in the automotive industry: Empirical evidence from Czechia," Environment and Planning A, , vol. 48(5), pages 937-959, May.
    9. Vincent FRIGANT, 2011. "Three uncertainties looming over the European auto industry," Cahiers du GREThA (2007-2019) 2011-34, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    10. Vincent FRIGANT, 2013. "Une comparaison de l’internationalisation des chaînes d’approvisionnement automobiles allemande et française," Cahiers du GREThA (2007-2019) 2013-09, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    11. Vincent FRIGANT, 2011. "Egyptian pyramid or Aztec pyramid: How should we describe the industrial architecture of automotive supply chains in Europe?," Cahiers du GREThA (2007-2019) 2011-27, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    12. Petr Pavlínek, 2012. "The Internationalization of Corporate R&D and the Automotive Industry R&D of East-Central Europe," Economic Geography, Clark University, vol. 88(3), pages 279-310, July.
    13. Anthony Black, 2009. "Location, Automotive Policy, and Multinational Strategy: The Position of South Africa in the Global Industry since 1995," Growth and Change, Wiley Blackwell, vol. 40(3), pages 483-512, September.
    14. Jesús F. Lampón & Santiago Lago-Peñas & Pablo Cabanelas, 2016. "Can the periphery achieve core? The case of the automobile components industry in Spain," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 595-612, August.
    15. Frigant, Vincent, 2014. "Une comparaison de la fragmentation internationale des chaînes d’approvisionnement automobiles allemande et française," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 15.
    16. Vincent Frigant, 2015. "Beyond The Business Case and Sustainable chain management: Why Do We Need to Build a Theory of Interfirm Social Responsability?," Post-Print hal-01426819, HAL.
    17. Jesús F. Lampón & Santiago Lago-Peñas, 2013. "Factors behind international relocation and changes in production geography in the European automobile components industry," Working Papers 2013/16, Institut d'Economia de Barcelona (IEB).
    18. Martín Obaya, 2015. "Technological learning in MNC subsidiaries operating in regional integration processes: a case study on an automotive company in MERCOSUR," Globelics Working Paper Series 2015-02, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management.
    19. Yannick Lung, 2004. "The changing geography of the European automobile system," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 4(2/3), pages 137-165.
    20. Lampón, Jesús F., 2019. "Relocation in conditions of uncertainty: the Spanish automobile components industry during the economic crisis (2008-2012)," MPRA Paper 92738, University Library of Munich, Germany.

    More about this item

    Keywords

    Global Production Networks; Automotive; Auto parts industry; Globalisation; Regionalisation; International economics;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:grt:wpegrt:2014-09. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/ifredfr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ernest Miguelez (email available below). General contact details of provider: https://edirc.repec.org/data/ifredfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.