THE ARGENTINE AUTOMOTIVE INDUSTRY TOWARDS THE CHALLENGE OF OPENING TO THE EU: STRUCTURAL CHANGES, BUSINESS CONDUCTS AND IMPACTS ON SECTOR PERFORMANCE

Julimar Da Silva Bichara () and Gonzalo A. Dalmasso ()
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Julimar Da Silva Bichara: Universidad Autónoma de Madrid
Gonzalo A. Dalmasso: Universidad de Buenos Aires

Revista de Economía Política de Buenos Aires, 2019, issue 19, 9-66

Abstract: This article provides elements for an impact scenario of the eventual Association Agreement between Mercosur and the EU on the Argentine automotive industry. It is inquired how companies would react to this shock and how it would impact sector performance, based on a survey to key industry players. It is concluded that -given the current situation of the environment- the Agreement would entail more risks than opportunities for the value chain, particularly for auto parts companies. The intensification of competition would induce changes in business behavior in terms of specialization, modernization, cooperation and sourcing. In contrast, there is skepticism that it can propitiate offensive-type adaptation strategies to take advantage of new business opportunities (exports, greenfield investments, innovations). The impact on local value added and employment would therefore be predominantly contractive.

Keywords: European Union-Mercosur negotiation; Argentine automotive industry; Structure-Conduct-Performance. (search for similar items in EconPapers)
JEL-codes: F15 L62 O14 (search for similar items in EconPapers)
Date: 2019
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