IDEAS home Printed from https://ideas.repec.org/a/fip/fedfpr/y2005x24.html
   My bibliography  Save this article

Increasing global competition and labor productivity: lessons from the U.S. automotive industry

Author

Listed:
  • Martin N. Baily
  • Diana Farrell
  • Ezra Greenberg
  • Jan-Dirk Henrich
  • Naoko Jinjo
  • Maya Jolles
  • Jaana Remes

Abstract

Increasing global competition is changing the environment facing most companies today. As trade barriers fall and transaction costs decline, new global competitors are entering previously more isolated domestic markets. In response to this intensified competitive pressure, local companies are pushed to enhance performance by innovating and adopting process and product improvements. This domestic sector dynamic leads to higher productivity, which, in turn, can create sustainable competitive advantages for companies, as well as being the most important driver of job creation and per-capita income growth for the economy. This link has been established in McKinsey Global Institute?s extensive country productivity research. ; Our new study goes further than previous research by focusing on how increasing global competition leads to productivity growth, using the U.S. automotive manufacturing sector as a case example. More specifically, we have focused on the production of new vehicles in the U.S., including parts assembly. We have chosen this example because of the globally competitive nature of the automotive market and the size of the U.S. in this market over our period of analysis. As we shall see, some of the non-US original equipment manufacturers (OEMs) had clear productivity advantages which enabled them to create significant competitive pressure in the U.S. market.

Suggested Citation

  • Martin N. Baily & Diana Farrell & Ezra Greenberg & Jan-Dirk Henrich & Naoko Jinjo & Maya Jolles & Jaana Remes, 2005. "Increasing global competition and labor productivity: lessons from the U.S. automotive industry," Proceedings, Federal Reserve Bank of San Francisco.
  • Handle: RePEc:fip:fedfpr:y:2005:x:24
    as

    Download full text from publisher

    File URL: https://www.frbsf.org/wp-content/uploads/4_IncreasingGlobalCompetition.pdf
    File Function: Full Text
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Barry T. Hirsch, 2008. "Sluggish Institutions in a Dynamic World: Can Unions and Industrial Competition Coexist?," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 153-176, Winter.
    2. Abolhassani, Amir & James Harner, E. & Jaridi, Majid, 2019. "Empirical analysis of productivity enhancement strategies in the North American automotive industry," International Journal of Production Economics, Elsevier, vol. 208(C), pages 140-159.
    3. Cuihong Li, 2013. "Sourcing for Supplier Effort and Competition: Design of the Supply Base and Pricing Mechanism," Management Science, INFORMS, vol. 59(6), pages 1389-1406, June.
    4. Yoshihiko Kadoya & Mostafa Saidur Rahim Khan & Somtip Watanapongvanich & Punjapol Binnagan, 2020. "Emotional Status and Productivity: Evidence from the Special Economic Zone in Laos," Sustainability, MDPI, vol. 12(4), pages 1-15, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedfpr:y:2005:x:24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Federal Reserve Bank of San Francisco Research Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbsfus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.