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Sources of Value-Added in V4 automotive GVCs: The Case of Transport and Storage Services and Firm Level Technology Absorption

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  • Marek Minárik
  • Stanislav Zábojník
  • Janka Pásztorová

Abstract

Within V4 automotive Global Value Chains (GVCs), technologies absorbed by the corporate sector represent a significant impact on the level of value-added created within the economy. Sectoral and geographic targeting of our research is determined by the export of motor vehicles, trailers, and semi-trailers produced in the V4 countries. The article's main objective was to investigate the role of services provided by V4 countries within GVCs with an emphasis on transport and storage. The authors used the method of linear regression analysis to answer two central research questions. Is there a synergic or spillover effect within the automotive clusters of the V4 countries in creating value-added originating in the logistic services? What role absorption of technology at the firm level in EU27 countries (the most important trading partners of the V4 countries) plays in creating value-added in the V4 automotive sector? Authors found differentiated results within V4 countries, confirming the hypothesis related to technology absorption. Implications for Central European audience: Despite high V4 export performance, the research suggests how to increase the value-added through higher involvement within GVCs (particularly the automotive industry). The paper demonstrates a positive impact of importing transport services from the EU countries to some V4 countries (Slovakia, Czechia, and Poland) and its value-added content in gross exports. For any V4 country, an increase in the quality of the business environment of EU trade partners (measured as the corporate level of technology absorption) results in a lower value-added creation, quite significantly, with lower effect in the case of Czechia, but more than 15% decrease in case of Poland, Hungary, and Slovakia.

Suggested Citation

  • Marek Minárik & Stanislav Zábojník & Janka Pásztorová, 2022. "Sources of Value-Added in V4 automotive GVCs: The Case of Transport and Storage Services and Firm Level Technology Absorption," Central European Business Review, Prague University of Economics and Business, vol. 2022(4), pages 1-24.
    • Handle: RePEc:prg:jnlcbr:v:2022:y:2022:i:4:id:301:p:1-24
    DOI: 10.18267/j.cebr.301
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    References listed on IDEAS

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    1. Olivier Cattaneo & Gary Gereffi & Cornelia Staritz, 2010. "Global Value Chains in a Postcrisis World : A Development Perspective," World Bank Publications - Books, The World Bank Group, number 2509.
    2. Fernández-Stark, Karina & Gereffi, Gary & Bamber, Penny, 2014. "Global value chains in Latin America: A development perspective for upgrading," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37177, May.
    3. Marcel P. Timmer & Abdul Azeez Erumban & Bart Los & Robert Stehrer & Gaaitzen J. de Vries, 2014. "Slicing Up Global Value Chains," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 99-118, Spring.
    4. Timothy J. Sturgeon & Johannes Van Biesebroeck, 2011. "Global value chains in the automotive industry: an enhanced role for developing countries?," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 4(1/2/3), pages 181-205.
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    Cited by:

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    More about this item

    Keywords

    value-added; automotive industry; Global Value Chains; transport and storage;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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