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Central and Eastern Europe’s dependent development in German automotive value chains

Tamas Gerocs () and Andras Pinkasz ()
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Tamas Gerocs: Institute of World Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences
Andras Pinkasz: Hungarian Central Statistical Office

No 253, IWE Working Papers from Institute for World Economics - Centre for Economic and Regional Studies

Abstract: For several decades, the German automotive industry has been under mounting pressure to reorganize its production processes and its modes of value-chain governance. In this paper, we analyze the effects this restructuring has had on the economic development of the Central and Eastern European countries that have specialized in automotive production during the capitalist transition. We focus on two global market forces: the standardization of the production of electric engines and the changing patterns of international trade regulation, mostly under the German neo-mercantilist trade regime. Our hypothesis is that structures of dependent development are reproduced by the forms of vertical specialization that have emerged in the automotive industry in these countries. To prove this, we combine the theory of global value chains with Vernon’s product life-cycle theory.

Keywords: core-periphery; dependent development; global automotive value chains; product life cycle; relocation; vertical specialization (search for similar items in EconPapers)
JEL-codes: B5 F4 F6 L6 N1 P1 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2019-05
New Economics Papers: this item is included in nep-eur, nep-hme and nep-int
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