The automotive industry, developments in China and implications for Latin America

Marco Kamiya and Cesar Ramirez

MPRA Paper from University Library of Munich, Germany

Abstract: Due to its dimensions and global scope the automotive industry is often a subject of debate when investment promotion policies, insertion strategies for productive chains, and mechanisms of technology transfer are being discussed. The automotive industry combines three important elements: (i) it is leading the globalization of production (e-commerce, subcontracting, and commercialization), (ii) the production of vehicles in China and East Asia is vitalizing the market and provoking changes in strategies, and (iii) the division between original producers and suppliers is consolidating the number of producers but increasing the number of subcontractors. These new trends, which include productive globalization, China and new production chains, make necessary the formulation of a production strategy by private businesses and appropriate promotion by governments.

Keywords: China; Latin America; Peru; Automotive Industry, Car Industry, Production Networks (search for similar items in EconPapers)
JEL-codes: F2 L1 L52 (search for similar items in EconPapers)
Date: 2004-09, Revised 2004-12
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