State strategies in promoting automotive manufacturing investments - the case of Hungary and Türkiye

Tamás Szigetvári () and Gábor Túry ()
Additional contact information
Tamás Szigetvári: Institute of World Economics, Centre for Economic and Regional Studies, ELRN
Gábor Túry: Institute of World Economics, Centre for Economic and Regional Studies, ELRN

No 269, IWE Working Papers from Institute for World Economics - Centre for Economic and Regional Studies

Abstract: The automotive industry is a key driver of the economic and technological catch-up process. Its development is therefore a priority in state development policy. This does not only mean direct financial support, but also tax policy or labour market regulation. Unilateral changes to the rules of employment, or policies leading to the dominance of labour-intensive activities, can in the long term undermine a country's competitiveness, preventing it from adding value and moving up the global value chain. In many respects, Hungary and Türkiye share similar characteristics. The automotive sector is of high strategic importance in both countries. The politico-economic set-up of the two countries also has many similarities in terms of authoritarian centralized decision-making and neoliberal policy elements (tax system, labour laws, social policy, etc). The same pattern of economic policies results in the development of a unilateral support policy in both countries. At the same time, due to the domestic capabilities of the automotive industry, many differences can be discovered in terms of results. During the research, the authors point out the parallels between state strategies and evaluate the successes and the negative consequences of economic policy choices.

Keywords: automotive; industrial policy; multinational corporations; Hungary; Türkiye (search for similar items in EconPapers)
JEL-codes: F23 L62 O25 P11 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2022-12
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://vgi.krtk.hu/wp-content/uploads/2023/02/Szigetvari-Tury_WP_269.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iwe:workpr:269

Access Statistics for this paper

More papers in IWE Working Papers from Institute for World Economics - Centre for Economic and Regional Studies Contact information at EDIRC.
Bibliographic data for series maintained by Kanász Mária ().