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Crisis and Upgrading: The Case of the Hungarian Automotive and Electronics Sectors

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  • Magdolna Sass
  • Andrea Szalavetz

Abstract

By triggering a wave of organisational restructuring, reconfiguration of supply chains and consolidation of business processes at multinational companies, the crisis offered significant upgrading opportunities for peripheral actors in globalised production networks (the so-called global value chains). Drawing on Hungarian case studies of local subsidiaries in the automotive and electronics industries, this essay investigates the crisis-induced product, process and functional upgrading opportunities in low-cost locations. We show Hungary's high level of integration into global value chains and document the rapidly ongoing process of functional upgrading.

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  • Magdolna Sass & Andrea Szalavetz, 2013. "Crisis and Upgrading: The Case of the Hungarian Automotive and Electronics Sectors," Europe-Asia Studies, Taylor & Francis Journals, vol. 65(3), pages 489-507.
    • Handle: RePEc:taf:ceasxx:v:65:y:2013:i:3:p:489-507
    DOI: 10.1080/09668136.2013.779463
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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. Magdolna Sass & Miklos Szanyi, 2012. "Two essays on Hungarian relocations," CERS-IE WORKING PAPERS 1223, Institute of Economics, Centre for Economic and Regional Studies.
    3. Yeats, Alexander J., 1998. "Just how big is global production sharing?," Policy Research Working Paper Series 1871, The World Bank.
    4. Sturgeon, Timothy J. & Van Biesebroeck, Johannes, 2010. "Effects of the crisis on the automotive industry in developing countries : a global value chain perspective," Policy Research Working Paper Series 5330, The World Bank.
    5. Jyrki Ali-Yrkkö & Neil Foster-McGregor & Doris Hanzl-Weiss & Petri Rouvinen & Timo Seppälä & Robert Stehrer & Roman Stöllinger & Pekka Ylä-Anttila, 2011. "Trade in Intermediate Products and EU Manufacturing Supply Chains," wiiw Research Reports 369, The Vienna Institute for International Economic Studies, wiiw.
    6. Sato, Yuri & Fujita, Mai, 2009. "Capability Matrix : A Framework for Analyzing Capabilities in Value Chains," IDE Discussion Papers 219, Institute of Developing Economies, Japan External Trade Organization(JETRO).
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    Citations

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    Cited by:

    1. Ewa Cieślik, 2022. "A New Era Is Beginning in Central and Eastern Europe: Information and Communication Technology Services Exceed Manufacturing in the Global Production Chain," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2607-2639, December.
    2. Antonio García-Sánchez & Ruth Rama, 2022. "Cooperative innovation and crises: Foreign subsidiaries, state-owned enterprises, and domestic private firms [Directorship Interlocks in Comparative Perspective: The Case of Spain]," Science and Public Policy, Oxford University Press, vol. 49(6), pages 915-927.
    3. Éltető, Andrea, 2014. "A visegrádi országok kereskedelme Ázsiával - a globális termelés lenyomata [The trade of the Visegrád countries with Asia - a manifestation of global production]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 586-608.
    4. Andrea ÉLTETŐ & Katalin VÖLGYI, 2013. "Integrated in the global value chains - trade developments between Hungary and Asia," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 4, pages 57-79, June.
    5. Dzikowska Marlena & Gorynia Marian, 2020. "Long-term evolution of the subsidiary’s role: a qualitative perspective on a subsidiary located in Poland," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(1), pages 79-95, March.
    6. Szalavetz, Andrea, 2022. "Transition to electric vehicles in Hungary: A devastating crisis or business as usual?," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    7. Ottó Csíki & Réka Horváth & Levente Szász, 2019. "A Study of Regional-Level Location Factors of Car Manufacturing Companies in the EU," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(supplemen), pages 13-39, December.
    8. Burger, Anže & Jindra, Björn & Marek, Philipp & Rojec, Matija, 2018. "Functional Upgrading and Value Capture of Multinational Subsidiaries," Journal of International Management, Elsevier, vol. 24(2), pages 108-122.
    9. Gábor Márk Pellényi, 2020. "The Role of Central and Eastern Europe in Global Value Chains: Evidence from Occupation-Level Employment Data," European Economy - Economic Briefs 062, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    10. Szunomár, Ágnes & Lima da Frota Araujo, Carlos Raul, 2022. "Kelet-Közép-Európa a digitális selyemúton? Lehetséges politikai gazdaságtani magyarázatok [Central and Eastern Europe on the Digital Silk Road? Possible political economic explanations]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 367-388.
    11. Ewa Cieślik, 2019. "Looking for the sectoral interdependence: evidence from the Visegrad countries and China," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(4), pages 2041-2062, July.
    12. Andrea Elteto & Agnes Szunomar, 2015. "Ties of Visegrád countries with East Asia – trade and investment," IWE Working Papers 214, Institute for World Economics - Centre for Economic and Regional Studies.

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