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Crisis and protection in the automotive industry : a global value chain perspective

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  • Sturgeon, Timothy J.
  • Van Biesebroeck, Johannes

Abstract

In this paper the authors apply global value chain (GVC) analysis to recent trends in the global automotive industry, with special attention paid to government interventions triggered by the recent economic crisis. The authors first highlight some of the defining characteristics of GVCs in this important industry, especially the unusually strong regional structure of production and sales. National political institutions create pressure for local content, which drives production close to end markets, where it tends to be organized nationally or regionally. They then examine policy reactions to the recent economic crisis, and provide some discussion of the government interventions in the industry. The authors end with a number of policy conclusions that highlight the likely impact of the interventions on the evolution GVCs and the growth of the industry in developing countries.

Suggested Citation

  • Sturgeon, Timothy J. & Van Biesebroeck, Johannes, 2009. "Crisis and protection in the automotive industry : a global value chain perspective," Policy Research Working Paper Series 5060, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5060
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    References listed on IDEAS

    as
    1. Caballero, Ricardo J & Hammour, Mohamad L, 1994. "The Cleansing Effect of Recessions," American Economic Review, American Economic Association, vol. 84(5), pages 1350-1368, December.
    2. Steven Klepper, 2002. "Firm Survival and the Evolution of Oligopoly," RAND Journal of Economics, The RAND Corporation, vol. 33(1), pages 37-61, Spring.
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    Cited by:

    1. Grigolon, Laura & Leheyda, Nina & Verboven, Frank, 2012. "Public support for the European car industry: An integrated analysis," ZEW Discussion Papers 12-077, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Sturgeon, Timothy J. & Van Biesebroeck, Johannes, 2010. "Effects of the crisis on the automotive industry in developing countries : a global value chain perspective," Policy Research Working Paper Series 5330, The World Bank.
    3. Giuseppe Calabrese & Dan Coffey & Tommaso Pardi, 2013. "New industrial policies for the automotive industry in Europe," CERIS Working Paper 201321, Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.
    4. 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.

    More about this item

    Keywords

    Markets and Market Access; Economic Theory&Research; Labor Policies; Water and Industry; Debt Markets;

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