Effects of the Crisis on the Automotive Industry in Developing Countries: A Global Value Chain Perspective
By T. Sturgeon, Johannes Van Biesebroeck. 2010
118 citations recorded by the source corpus.
This paper applies global value chain analysis to study recent trends in the global automotive industry. The authors pay special attention to the effects of the recent economic crisis on the industry in developing countries. The principal finding is that the crisis has accelerated pre-crisis trends toward greater importance of the industry in the South. More rapid growth of car ownership is the impetus, but the co-location and close interaction of suppliers and lead firms in this industry is an important catalyst. Opportunities to move up in the value chain for suppliers in emerging economies have proliferated and are likely to become even stronger now that an increasing number of new models are developed specifically for markets in developing countries. The co-location of assembly and parts plants in national and regional production systems has largely confined the impact of sales declines during the crisis to each country/region. In addition, the different development strategies followed by countries like Mexico, China, and India are slowly converging as their industries gain size and independence.
Subfields: Economics and Econometrics, Political Science and International Relations
View Paper: https://www.semanticscholar.org/paper/529ff1824e5565f95306d808a96d50d28ee00667
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Citations in the corpus
- INVESTING IN THE SDGs: AN ACTION PLAN (2014, background): “However, it has not necessarily forged strong linkages with local suppliers (Sturgeon et al., 2010).”
- Mapping Global Value Chains (2014, background): “This in turn creates pressure for supplier co-location within regional production systems for operational reasons, such as just-in-time production, design collaboration and the support of globally produced vehicle platforms (Van Biesebroeck and Sturgeon, 2010).”