Stuck in second gear? EU integration and the evolution of Poland’s automotive industry

Olga Markiewicz

Review of International Political Economy, 2020, vol. 27, issue 5, 1147-1169

Abstract: In contrast to dependent market economy (DME) literature, which argues that Central and Eastern European (CEE) economies serve primarily as assembly platforms for multinational corporations (MNCs) and try to meet their demands, this paper argues that CEE states have done much more than merely accommodating the interests of foreign investors. An analysis of the automotive sector in Poland reveals that the Polish state engaged actively in industrial policy to shape the profile of automotive production and to improve the country’s position in the automotive value chain. Instead of waiting for MNCs to establish backward linkages, it nurtured the rise of a supply industry with forward linkages in the automotive value chain, thus decreasing Poland’s dependence on lead MNCs. Moreover, this paper finds that while EU integration limited policy space for development, it also offered new developmental opportunities, which Polish state actors used to improve the international competitiveness of the sector.

Date: 2020
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DOI: 10.1080/09692290.2019.1681019

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