Upgrading in the automotive industry: firm-level evidence from Central Europe

Drawing on the global value chains and global production networks perspectives and using financial indicators for individual firms, we evaluate industrial upgrading of 490 Czech-based automotive firms during the period of significant inflows of foreign direct investment into the Czech automotive ind...

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Bibliographic Details
Published in:Journal of economic geography 2011-05, Vol.11 (3), p.559-586
Main Authors: Pavlinek, P., Zenka, J.
Format: Article
Language:English
Subjects:
Automobile industry
Automotive industries
Capital investments
Capital per worker
Commercial production
Employment
Foreign investment
Industrial development
Industrial plants
Industrial policy
Labor productivity
Productivity
Railroad passenger cars
Studies
Value chain
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Summary:Drawing on the global value chains and global production networks perspectives and using financial indicators for individual firms, we evaluate industrial upgrading of 490 Czech-based automotive firms during the period of significant inflows of foreign direct investment into the Czech automotive industry between 1998 and 2006. We consider differences among process, product and functional upgrading and the effect of government policies on upgrading of Czech-based automotive firms. We also evaluate the differences between the domestic- and foreign-owned automotive firms and changes in the relative position of Czechia in European automotive value chains. Despite the documented major changes in the Czech automotive industry between 1998 and 2006, the analyzed data suggest the selective nature of industrial upgrading at the firm level.
ISSN:1468-2702
1468-2710
DOI:10.1093/jeg/lbq023