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ASEAN economic community and the regional automotive industry: impact of ASEAN economic integration on two types of automotive production in Southeast Asia

Author

Listed:
  • Hideo Kobayashi
  • Yingshan Jin
  • Martin Schroeder

Abstract

This paper investigates the impact of the on-going economic integration in the ASEAN region on the regional automotive industry. Investigation is not limited to global automotive original equipment manufacturers (OEMs), but includes local assemblers. While ASEAN has implemented policies that promoted the creation of supply chains between member states to further economic development, it will be highlighted how the forthcoming deeper integration policy dubbed ASEAN Economic Community (AEC) 2015 is already influencing industry development. The question is if the politically induced economic integration in ASEAN and industrial policies of individual member states are going to lead to envisioned development of the automotive industry or if this development may be confined to established producing countries. Specifically, the question will be traced if production in all countries is going to develop towards fully integrated production or if companies are going to practice minimal localisation in peripheral markets such as the so-called CLMV countries (Cambodia, Laos, Myanmar, and Vietnam), so that these countries get locked in production that is basically assembly of imported components or manufacturing of intermediate and labour-intensive components.

Suggested Citation

  • Hideo Kobayashi & Yingshan Jin & Martin Schroeder, 2015. "ASEAN economic community and the regional automotive industry: impact of ASEAN economic integration on two types of automotive production in Southeast Asia," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 15(3), pages 268-291.
  • Handle: RePEc:ids:ijatma:v:15:y:2015:i:3:p:268-291
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    Citations

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    Cited by:

    1. Black Anthony & McLennan Thomas & Makundi Brian, 2017. "Working Paper 282 - Africa’s Automotive Industry Potential and Challenges," Working Paper Series 2412, African Development Bank.
    2. Martin Krzywdzinski, 2021. "Automation, digitalization, and changes in occupational structures in the automobile industry in Germany, Japan, and the United States: a brief history from the early 1990s until 2018 [Managing fle," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(3), pages 499-535.
    3. Anthony Black & Lawrence Edwards & Faizel Ismail & Brian Makundi & Mike Morris, 2019. "Spreading the gains?: Prospects and policies for the development of regional value chains in Southern Africa," WIDER Working Paper Series wp-2019-48, World Institute for Development Economic Research (UNU-WIDER).

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