Industrial Upgrading in Global Production Networks: The Case of the Chinese Automotive Industry

Yansheng Li, Xin Xin Kong and Miao Zhang
Additional contact information
Yansheng Li: Beijing Zhengxiang Yongdao Management Consulting Company
Xin Xin Kong: Chinese Academy of Science and Technology for Development
Miao Zhang: Department of Development Studies, University of Malaya

No DP-2015-07, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This article examines the development of China’s automotive industry. The evidence shows that integration in global production networks has stimulated upgrading of technological capabilities among automotive firms. However, the competitiveness and intra-industry analyses show mixed results. Although intraindustry trade in automotive products has improved since 2000, the trade competitiveness of completely built up vehicles has largely remained in low value added activities. Nevertheless, firm-level evidence shows that the industry has undergone considerable upgrading, albeit in low value added activities. Trade integration and host-country institutional support have been the prime driving forces of technological upgrading in the automotive industry in China.

Keywords: automotive industry; foreign firms; production networks; technological capabilities (search for similar items in EconPapers)
JEL-codes: L14 L22 L62 O31 (search for similar items in EconPapers)
Pages: 37 pages.
Date: 2015-02
New Economics Papers: this item is included in nep-ind, nep-int, nep-net and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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