Relative positions of countries in the core-periphery structure of the European automotive industry

Pavlínek, Petr

doi:10.1177/09697764211021882

Cited by 33 publications

(37 citation statements)

References 76 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…CEE suppliers in global value chains serve as the primary examples of this convergence, a companion to export-based learning. These rms have mostly been located at the Tier 3 and Tier 2 levels, with limited expansion along the 'smile curve' model of distributing added value (Mudambi 2008) towards higher value-added activities (Pavlínek 2017(Pavlínek , 2022a. Limited transfer of advanced functions can be observed in CEE subsidiaries, mainly linked to the centrally managed, e ciency-and costoriented competitive strategies of lead rms.…”

Section: Embedding the Fdi-based Model: Path Renewalmentioning

confidence: 99%

“…Here, the hopes of becoming new innovation hubs have eluded the Visegrad countries. TNC strategies do not use the integrated periphery as research hubs the way they do core countries (Molnár 2021;Pavlínek 2022a). While higher R&D functions such as product design have been kept close to corporate centres, transferring production involves delegating some potential for on-site knowledge creation, or 'shop-oor innovation' (Pavlínek, Žižalová 2014;Šipikal, Buček 2018).…”

Section: Embedding the Fdi-based Model: Path Renewalmentioning

confidence: 99%

See 1 more Smart Citation

FDI-based regional development in Central and Eastern Europe: A review and an agenda

Gál

Lux

2022

TéT

View full text Add to dashboard Cite

This review article reflects on thirty years of FDI-dependent development in Central and Eastern European regions (with a special emphasis on the Visegrad countries). The modernisation potential of FDI-led European integration is examined from a critical and comparative perspective. The authors argue that the FDI-led “Dependent Market Economy” (DME) model has fallen short of its anticipated modernisation potential, while other, potentially lucrative development alternatives have been neglected. While early-stage benefits were considerable, the development model now faces signs of exhaustion and an increasing number of contradictions. The paper builds on previous original research by the authors, as well as a review of international academic literature to describe the limitations and trade-offs of the DME development model, followed by an overview of three alternate growth paths for the future. In the macro-level perspective, it is argued that long-term catching-up rates across Central and Eastern Europe over 30 years have been limited, and signs of slowdown are increasingly apparent. Likewise, FDI does not seem to contribute significantly to domestic capital accumulation. On the micro-economic and regional levels, limited income effects are coupled with intangible risks and trade-offs. Strengthened socio-economic and territorial disparities ultimately pose problems for both metropolitan core regions and peripheries, while low capital embeddedness and limited spillovers denote weak territorial integration. It I advanced that the DME model may exacerbate future structural crises and exogenous shocks, and finally, that a development model dependent on exogenous capital structures shows curtailed capability to explore, learn, and benefit from beneficial growth opportunities. The paper makes the case that, while the DME model cannot be realistically dismantled in the foreseeable future without considerable risk to the CEE economies, a comprehensive diversification agenda should seek to gradually reduce its risks and foster alternate sources of growth. Embedding foreign capital into local economic networks represents one possible compromise, coupled with growing supplier networks and anchoring value creation in business services as well as innovation and R&D activities. However, alternate sources of development are also to be explored. The new revival of industrial policies in Europe and across the world opens opportunities before previously ‘inconceivable’ state-led development initiatives, including support for the emergence of new national champions. Last but not least, a strengthening domestic SME sector with competitive medium-sized enterprises and locally embedded production networks should serve to strengthen entrepreneurial ecosystems in domestic capital accumulation and value creation. Together, these and similar steps have the capability to shift the balance from the DME model towards a more competitive and resilient “successor model” where the interests of FDI and domestic development can be fruitfully reconciled.

show abstract

Section: Embedding the Fdi-based Model: Path Renewalmentioning

confidence: 99%

Section: Embedding the Fdi-based Model: Path Renewalmentioning

confidence: 99%

FDI-based regional development in Central and Eastern Europe: A review and an agenda

Gál

Lux

2022

TéT

View full text Add to dashboard Cite

show abstract

“…Linkages alone do not guarantee that spillovers will develop since they depend on the absorptive capacity of local firms (Ascani & Gagliardi, 2020; Saliola & Zanfei, 2009), which is considered to be crucial for their ability to benefit from FDI (Ernst & Kim, 2002; Giroud et al., 2012; Meyer, 2004; Sultana & Turkina, 2020). The absorptive capacity of local firms is strongly conditioned by their R&D capabilities (Cohen & Levinthal, 1989; Sturgeon et al., 2010), which are generally higher in MDRs than in LDRs (Dunning & Lundan, 2008; Meyer & Sinani, 2009; Pavlínek, 2018, 2022). Consequently, MDRs are more likely to benefit from spillovers and hence from positive long‐term effects of FDI than LDRs.…”

Section: Economic Geography and Regional Development Effects Of Fdimentioning

confidence: 99%

“…How to cite this article: Pavlínek, P. (2022). Revisiting economic geography and foreign direct investment in less developed regions.…”

Section: Author Biographymentioning

confidence: 99%

Revisiting economic geography and foreign direct investment in less developed regions

Pavlínek

2022

Geography Compass

Self Cite

View full text Add to dashboard Cite

This article focuses on the long-term effects of foreign direct investment (FDI) in less developed regions (LDRs). It identifies different types and mechanisms of FDI in more developed regions (MDRs) and LDRs, which lead to different regional development outcomes. It critically evaluates the most important approaches to FDI in LDRs developed in economic geography, namely the branch plant economy and truncation, new regionalism, new international division of labor and spatial divisions of labor, and global production networks. In the long run, FDI tends to benefit MDRs more than LDRs. The article calls on economic geographers to continue the research on FDI in the context of uneven development.

show abstract

“…The dynamic character of the integrated peripheries in Europe is reflected in the new international division of labour (Domański et al, 2008;Pavlínek, 2022), which includes:…”

Section: The Global Production Network and Dynamics Of The Integrated...mentioning

confidence: 99%

Spatial patterns and time-accessibility of supplier network of the automotive industry in Slovakia

et al. 2022

View full text Add to dashboard Cite

The article deals with the spatial pattern of the supply network of the automotive industry according to the time-accessibility to four car assembly plants in Slovakia. Empirical results are anchored in the spatial concept of integrated periphery and theoretical framework of the nested structure. We obtained the data after a personal meeting with the General Secretary of the Association of the Automotive Industry in Slovakia. The database contains a list of 313 suppliers of different levels. We assume that with increasing distance from automobile assembly plants and decreasing level of the supply network, the geographical concentration of the supply network will become lower. Our results confirm the assumption that tier-1 suppliers are located closer to assembly plants with higher geographical concentration compared to bottom suppliers‘ levels. On the other hand, these spatial patterns change when we consider a regional production system of the automotive industry that reaches beyond the national territory scale (e.g., KIA) or a launch of a new car assembly plant (JLR) arriving into a developed environment with an existing network of suppliers.

show abstract

Relative positions of countries in the core-periphery structure of the European automotive industry

Cited by 33 publications

References 76 publications

FDI-based regional development in Central and Eastern Europe: A review and an agenda

FDI-based regional development in Central and Eastern Europe: A review and an agenda

Revisiting economic geography and foreign direct investment in less developed regions

Spatial patterns and time-accessibility of supplier network of the automotive industry in Slovakia

Contact Info

Product

Resources

About