How to conduct effective industrial policy: a comparison of automotive development in the Philippines and Indonesia

Thoburn, John; Natsuda, Kaoru

doi:10.1080/13547860.2018.1503768

Cited by 11 publications

(9 citation statements)

References 27 publications

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“…Therefore, a range of factors have resulted in escalating competition among national and subnational jurisdictions for automotive investment (Jacobs, 2015, 2017; Mordue, 2020; Thoburn and Natsuda, 2018). Turkey has responded in a resolute manner: the capacious application of industrial policy to provoke the establishment of a new, indigenous automaker, Togg, that its proponents claim will alter the profile of Turkey's automotive industry, shifting it from integrated periphery status to one that holds a primary attribute associated with core automotive countries; and hosting the headquarters of a global lead firm (see Mordue and Sweeney, 2020; Pavlínek, 2018, 2020).…”

Section: Discussionmentioning

confidence: 99%

“…In the post-2000 period, the aim of national and subnational automotive industrial policy makers in market economies (i.e. excluding China) has been incremental investment by existing automakers or suppliers (see Jacobs, 2015Jacobs, , 2017Mordue, 2020;Thoburn and Natsuda, 2018). Thus, the path pursued by Turkey via Togg -devising industrial policy measures to support an entirely new OEM -is, so far, unique in Europe and North America.…”

Section: Togg's Capacity To Generate Wider Economic Benefitsmentioning

confidence: 99%

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Upgrading in the Automotive Periphery: Turkey's Battery Electric Vehicle Maker Togg

Mordue¹,

Sener²

2022

Development and Change

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Restructuring of the automotive industry in the post‐2000 period has led to the emergence of three strata of automotive manufacturing jurisdictions. Core automotive countries host the headquarters of global automakers. They retain most research and development (R&D) and high levels of production. By contrast, integrated peripheries offer low‐cost labour. While increasing levels of vehicle production have gravitated there, they have been unable to attract mandates for knowledge‐intensive portions of the automotive value chain. Finally, semi‐peripheries have neither a home‐grown automaker nor low‐cost labour. Consequently, they have been unable to gain mandates for R&D and struggle to maintain production. Thus, policy makers in non‐core countries consider a range of tools to either retain their position or ‘graduate’ from one category to another. Recently, the demand for battery electric vehicles (BEVs) has given rise to new vehicle manufacturers. Turkey is attempting to develop a BEV automaker and jump from an automotive integrated periphery country to one having a key attribute of an automotive core: a home‐grown automaker. This article reveals and discusses Turkey's generous incentives and assesses the challenges the Turkish BEV entrant will confront, as well as its potential to generate wider economic benefits. The authors also consider the application the Turkey case study has for our understanding of power and upgrading in automotive global value chains.

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Section: Discussionmentioning

confidence: 99%

Section: Togg's Capacity To Generate Wider Economic Benefitsmentioning

confidence: 99%

Upgrading in the Automotive Periphery: Turkey's Battery Electric Vehicle Maker Togg

Mordue¹,

Sener²

2022

Development and Change

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“…During his government, a new automotive plan was launched. This sought to increase the local content of vehicles by means of tariff reductions on various products for companies that were based in the country and began to manufacture components not previously produced in Indonesia (Thoburn and Natsuda 2018).…”

Section: Exit From the Crisis And Economic Liberalizationmentioning

confidence: 99%

“…8. Due to WTO pressure, local content policies and mandatory deletion programs by local production were banned (Thoburn and Natsuda 2018). 9.…”

Section: The Low-cost Green Car (Lcgc) Policymentioning

confidence: 99%

Reconsidering automotive development strategies in Argentina in the light of the ASEAN experience

Artica

Ibáñez

Almansi

2022

RHI-IHR

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We compared the Argentinian automotive industry’s trajectory since 2000 with those corresponding to three ASEAN economies: Malaysia, Indonesia, and Thailand. We aimed to identify factors explaining the divergence among the four cases and to draw valuable conclusions for the re-design of Argentinian automotive policy. First, we considered the productive and foreign trade performance among the four cases. We then reviewed key industrial policies conducted over the period. Comparative analysis highlights the Thai experience, which posted outstanding performance on both industrial expansion and trade surplus. Moreover, we examined the high potential for selective policies incentivizing specific products and technologies, which can promote private strategies more aligned with macroeconomic stability and industrial development in Argentina.

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“…It means that MNEs can locate their value-chain activities anywhere in Southeast Asia, and then send the output to other countries without any barriers, which creates cross-country competition among local companies in the region. From national interest point of view, if a country is not ready for this free trade or premature trade liberalisation, the country local company will be harmed by this competition (Thoburn and Natsuda, 2018). This section elaborates how Neoliberal regime produces the 'winners' and the 'losers' of globalisation.…”

Section: Neoliberal Regimementioning

confidence: 99%

Upgrading Challenges in Global Value Chains

Syafrian¹

2019

Proceedings of the International Conference on Trade 2019 (ICOT 2019)

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Upgrading local companies is one of the key concerns of host government, especially in developing countries, in the age of Global Value Chains (GVC). GVC provide both opportunities and threats for host countries. One side, GVC are the window of opportunities for local companies to catch up with the global leaders. On the other hand, GVC could provide only limited impact on host country economic development by only seeking and exploiting the location advantages of host country. This paper aims to elaborate some common upgrading challenges faced by local companies when they insert in GVC. Four main upgrading challenges are identified, namely: limited value capture, inefficiency, Neoliberal regime, and bad policies and institutions. A countrylevel and a firm-level case study research are employed as the illustration how these challenges inhibit a country and its leading and potential local company to grow and upgrade its position in GVC. Indonesia and Astra International and its automotive subsidiaries (Astra) are chosen as the case study. Astra is an interesting case for number of reasons. First, Astra is originally from Indonesia. The company was established by Indonesians and locates most of all their businesses and value chain activities in Indonesia. Secondly, Astra is one of the largest Indonesian companies, which has about 200 subsidiaries and employs over 200,000 workers. Thirdly, Astra gives very rich insights for other Indonesian local companies and government how to grow, manage and support businesses in the age of GVC. Several implications for managerial strategy and policy recommendation are also discussed. The analysis is conducted by using mixed methods and triangulation from various previous literature, data sources, interviews, news, and company's historical archives.

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How to conduct effective industrial policy: a comparison of automotive development in the Philippines and Indonesia

Cited by 11 publications

References 27 publications

Upgrading in the Automotive Periphery: Turkey's Battery Electric Vehicle Maker Togg

Upgrading in the Automotive Periphery: Turkey's Battery Electric Vehicle Maker Togg

Reconsidering automotive development strategies in Argentina in the light of the ASEAN experience

Upgrading Challenges in Global Value Chains

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