Automotive Exports Research Articles

Analytic Network Process Method On Factors Affecting Increasing The Competitiveness Of The Automotive Industry Sector In Promoting Sustainable Economic Growth In Indonesia

The aim of this research is to determine the factors that influence the growth of the automotive industry sector such as automotive exports, automotive imports, Logistics Performance Index (LPI), monetary policy (rupiah exchange rate), fiscal policy (tax ratio), Total Factor Productivity (TFP ), Inflation, Infrastructure and Automotive Foreign Direct Investment (FDI), on the competitiveness of the automotive industry sector and its implications for economic growth which affects labor absorption, the level of social welfare and people's purchasing power. The research method used is a quantitative data research method with the analytical network process (ANP) method where this method is used to determine the criteria and alternative priority weight values and the results are carried out ranking in determining the influencing factors in this research. The research results show that the factors that influence the competitiveness of the automotive industry sector) and their implications for economic growth affect labor absorption, the level of social welfare and people's purchasing power. So it is concluded that increasing the competitiveness of the automotive industry sector will be able to encourage sustainable economic growth in Indonesia.

Industria automotriz en la región del TLCAN. Un análisis del valor agregado en las exportaciones bilaterales

The objective of this document is to decompose the gross value of bilateral exports of the automotive sector in the NAFTA region, according to the source and destination of its value added. A multi-country input-output model is utilized. The results indicate that Canada and Mexico are highly dependent on U.S. inputs to produce automotive exports while the U.S. records the highest content of domestic value-added. Besides, the U.S. has formed production chains that supply Canada and Mexico with production inputs that after processing return to the U.S. or are re-exported to third countries, whereas Canada and Mexico are limited to supplying final and intermediate goods to the U.S. Trade between the two countries is minor.

The impact of trade facilitation on automotive export performance of Thailand

The impact of trade facilitation on automotive export performance of Thailand

IMPACT OF REDUCED TARIFF RATE UNDER FTA SCHEME ON IMPORT QUALITY UPGRADING

The good quality of imported goods as input production is needed to produce quality goods. This paper examines the impact of reduced tariffs under FTA scheme on the quality of imported inputs in the Indonesian Automotive Industry in 2015-2019. Quality is measured by the unit value approach. Using data from Customs declaration documents, this paper captures the impact of tariffs on the quality of imported products using the Difference-in-Difference (DiD) method. The result shows that the reduction in tariffs does not have a significant impact on improving the quality of imported products. Most of Indonesia's automotive exports are dominated by less developed countries. Thus, producers do not take advantage of the reduction in tariffs to improve the quality of imported products to adapt purchasing power in the export market. They focus more on productivity to produce cheaper goods so that export products become more competitive in the export market in terms of price.

The impact of trade facilitation on automotive export performance of Thailand

The impact of trade facilitation on automotive export performance of Thailand

Czech Automotive Exports in the Context of the Global Economic Downturn from the Perspective of Statistics

Research background:The global outbreak of the COVID-19 and, as a result, the measures taken fundamentally disrupted the lives of people and economies. Private and public demand, industrial production, supply chains, etc. were affected. Given the severity of these shock changes, it is clear that the European Union will have experienced a severe economic recession.Purpose of the article:Economists have long pointed to the Czech economy’s strong dependence on the automotive industry. Carmakers and a number of companies connected to them have been chained into existential difficulties after COVID-19 outbreak. However, the scenario of redirecting the industry is not real.Methods:The article maps the declines in the forecast of GDP development in 2020 and 2021 in selected EU countries and statistically evaluates the historical dependence of Czech exports on German car production.Findings & Value added:According to predictions, the Czech Republic expects the highest negative deviations in comparison with other EU countries. Reality will show what role a strong dependence on the automotive industry plays in this. The results of the statistics of the previous decade do not confirm the fundamental dependence of Czech exports on German automobile production. As the results indicate, Czech exporters are already diversifying at least in the sense of the target markets. The author raises the question whether the concept of public belief in the importance of supporting Czech carmakers as important producers of GDP on the export side can be the result of a strong lobbying by carmakers.

Trade Effects of the EU–South Korea Free Trade Agreement in the Automotive Industry

The EU–South Korea free trade agreement (FTA) represents a case of comprehensive trade liberalization between two major economies with large automotive industries. This article examines and compares the total and automotive industry trade effects of the EU–South Korea FTA. The empirical gravity analysis shows asymmetric effects between the bilateral exports of EU and Korea. Trade-enhancing effects are found in both gross and value-added trade indicators of EU automotive exports, while no substantial effects are detected in Korean exports. The post-FTA trade dynamics suggest that the removal of industry-specific non-tariff barriers (NTBs) played an important role in facilitating EU automotive exports.

Automotive surrender: The demise of industrial policy in the Australian vehicle industry

AbstractAustralia developed a strong and successful automotive manufacturing industry after the Second World War, based on active industrial policy. But in 2017, mass vehicle assembly in the country will cease altogether, as the last global automakers operating in the country close their final plants, with negative spillover effects along the automotive manufacturing supply chain. After 2017, Australia will be the only major industrial country with no vehicle assembly whatsoever. This article analyses the shifts in industrial policy that explain both the initial postwar expansion, and the subsequent decline and closures. Policy-makers incorrectly assumed that the critical goal of stimulating automotive exports could be achieved through trade liberalisation, but dismantling tariffs only stimulated vehicle imports without increasing overseas demand for Australian cars. Production declined in tandem with tariffs, and there was no clear industry policy strategy for facilitating the redirection of released resources to more productive manufacturing activity, when that outcome, predicted in neoliberal comparative advantage theory, failed to materialise. Financial market deregulation, resulting in financialisation of the economy, coupled with high commodity prices, resulted in an overvalued and volatile currency, attracting foreign investors to resources and asset speculation while appearing to increase manufacturing production costs. A clear contrast is drawn between Australia’s policy passivity in recent decades, and the continued policy activism visible in other jurisdictions of all political orientations – including countries which, particularly after the global financial crisis, faced economic and industrial challenges at least as daunting as Australia’s. In the 1970s, Australia had been among the world’s top 10 auto manufacturers; after 2017, it will be one of only two G20 countries completely lacking mass automotive manufacturing capacity. The industry’s disappearance from Australia is shown to have resulted from some unique policy choices: understanding them may help avert future similar policy errors.

Performance Of South African Automotive Exports Under The African Growth And Opportunity Act From 2001 To 2015

The South African automotive industry is faced with the challenge of how to expand through exports in a saturated global automotive market, characterized by overcapacity. The vision of the South African automotive industry is to double its vehicle production to one million units per annum by 2020. However, domestic market limitations impede the ability to achieve sufficient economies of scale. Trade arrangements contribute towards increasing market access. The impact of the AGOA on automotive trade between the United States of America and South Africa was analyzed. It was found that the AGOA resulted in a substantial increase in two-way trade. Further research is encouraged with regard to the potential of regional integration in Africa for automotive exports from South African and the USA.

Firm and Product Heterogeneity in China's Automotive Exports

ABSTRACT The main purpose of this paper is to provide an in-depth analysis of the anatomy of China's automotive exports, relying on the literature on firm and product heterogeneity. For this purpose, we use highly disaggregated HS 8-digit product-category level data collected by the Chinese Customs Office for 2000 and 2008, and we distinguish between foreign firms, domestic public firms, and domestic private firms. We also decompose automotive products into autos and auto parts and components (P/C). We then calculate both the extensive margins – number of products exported – and intensive margins – average value of exports per product – of China's automotive exports. We estimate gravity equations to assess the determinants of China's exports of autos and auto P/C. Overall, our analysis yields a number of new, interesting stylized facts about China's automotive exports by confirming the need for taking into account different types of heterogeneity in analyzing international trade.

An Analysis of Japanese versus American Automakers' Supplier Relationships in Thailand

Abstract In the context of the US automobile market, past comparisons of automakers' supplier management practices show Japanese assemblers besting American counterparts along a number of dimensions despite American automakers' efforts to emulate Japanese practices. But recent studies suggest emergent American practices differ from traditional Japanese vertical keiretsu practices. Such a departure could affect American-allied Japanese automakers in Thailand, a major global automotive export hub. This exploratory study of 383 automobile part and component suppliers in Thailand finds suppliers to Japanese assemblers distinguishable by higher priorities placed on delivery and flexibility, but on an equal basis with suppliers to American assemblers in terms of cost and quality priorities.

The crisis and beyond: the dynamics and restructuring of automotive industry in Poland

The paper considers the effects of the crisis on the restructuring of automotive industry in Poland and its possible impact on the long-term prospects of the sector in the country. The dynamics of Polish automotive exports and the performance of various automotive suppliers located in Poland, depending on their size, ownership, position in supply chain and labour costs, are explored. This is followed by the analysis of foreign and domestic company strategies as well as the regional effects of the changes in the industry. The factors behind the upgrading processes, new plant locations and delocalisation are discussed.

Kelet-Közép-Európa az autóipar nemzetközi munkamegosztásában

Kelet-Közép-Európa az autóipar egyik kitüntetett beruházási terepének számít. A tanulmány a térségnek az iparágban játszott szerepét vizsgálja, külkereskedelmi adatok tükrében. Az autóipar térszerkezetében és nemzetközi munkamegosztásában mutatkozó változásoknak a szakirodalomra épített rövid összegzése után elemzi a régió iparági kereskedelembe kapcsolódásának mikéntjét, gépjárműgyártásának területi kapcsolatrendszerét és kivitelének termékszerkezetét. A vizsgálat az ezredforduló utáni évtizedre fókuszál, középpontjában az autóipar beruházásai által leginkább érintett visegrádi országok, továbbá Románia és Szlovénia állnak.

Foreign Equity and Technological Capabilities: A Comparison of Joint-venture and National Automotive Suppliers in India

Using the evolutionary framework, this paper examines differences in technological capabilities between joint-ventures with over 10% foreign equity and fully national owned suppliers located in the greater Delhi region. In a country where automotive manufacturing emerged from the relocation of foreign capital and with only 3 automobile assemblers supplying essentially the domestic market until 1991, India has experienced tremendous upward movement in firm-level technological capabilities to generate rapid growth in automotive exports to record a positive trade balance by 2000. Against the background of rapid expansion, this paper uses a sample of 84 tiers one and two suppliers to compare technological capabilities between joint-ventures with foreign equity and wholly national owned suppliers. The results show considerable participation of both joint-venture and national firms in cutting edge technological capabilities. The two tailed ‘t’ tests, and the knowledge intensity exercises show joint-ventures enjoying higher overall technological capabilities, training expense in payroll, process technology expenditure in sales and R&D expenditure in sales than national firms. The Tobit regressions show that once export-intensity and firm size is accounted for, joint-ventures enjoy a statistically significant higher technological capability with its superior process technology over national firms. Overall, the evidence shows that foreign equity is still important in the technological operations of automotive suppliers in India.

Customs Union and Competitiveness of Turkish Exports in the EU Market

When Turkey signed the Customs Union (CU) agreement with the EU in 1996 there were doubts about the costs and benefits of the CU with regards to Turkey’s foreign trade and industrial production. Theoretically, the CU helps improve efficiency by stimulating productivity gains in the tradable sectors and via technological gains due to spillover effects. It is of utmost interest to examine whether such expectations were materialized for Turkey. This article examines the changes in major Turkish exports destined to the EU market and determinants of competitiveness using dynamic shift-share analysis for the period 1987–2006. In this method, the competitiveness of Turkish products is examined vis-à-vis her competitors in the EU market. The results of the dynamic shift-share analysis show that Turkey’s competitive position has only partially improved. The results demonstrate that Turkey’s competitive position improved in textiles, iron and steel and automotive exports, and deteriorated in technologically more advanced manufacturing exports. The major determinants of this competitive position are found not to be price-related factors but “real” factors, such as productivity. The article concludes that potential benefits from a customs union have not yet materialized for major Turkish exports.

Foreign Direct Investment in a Recent Entrant to the EU: The Case of the Automotive Industry in Romania

A U.S.-based geographer presents the results of a survey of car and parts manufacturers in Romania with a focus on the role of foreign direct investment in the restructuring of the sector. Using a questionnaire and personal interviews, the author investigates and identifies the main factors attracting foreign automakers to Romania, which experienced a difficult transition after the collapse of the country's command economy and the ensuing loss of automotive exports to the neighboring states of CMEA. The paper covers the development of foreign ownership of vehicle assembly and car parts manufacturing plants, as well as the effects of foreign investment on Romania's national and local economies. Journal of Economic Literature, Classification Numbers: D20, F21, L62. 1 figure, 2 tables, 68 references.