Effects of the Crisis on the Automotive Industry in Developing Countries : A Global Value Chain Perspective
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 i...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100602085323 http://hdl.handle.net/10986/3815 |
| Summary: | 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. |
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