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Industrial Upgrading in Global Production Networks: The Case of the Chinese Automotive Industry

Author

Listed:
  • Yansheng LI

    (Beijing Zhengxiang Yongdao Management Consulting Company)

  • Xin Xin KONG

    (Chinese Academy of Science and Technology for Development)

  • Miao ZHANG

    (Department of Development Studies, University of Malaya)

Abstract

This article examines the development of China’s automotive industry. The evidence shows that integration in global production networks has stimulated upgrading of technological capabilities among automotive firms. However, the competitiveness and intra-industry analyses show mixed results. Although intraindustry trade in automotive products has improved since 2000, the trade competitiveness of completely built up vehicles has largely remained in low value added activities. Nevertheless, firm-level evidence shows that the industry has undergone considerable upgrading, albeit in low value added activities. Trade integration and host-country institutional support have been the prime driving forces of technological upgrading in the automotive industry in China.

Suggested Citation

  • Yansheng LI & Xin Xin KONG & Miao ZHANG, 2015. "Industrial Upgrading in Global Production Networks: The Case of the Chinese Automotive Industry," Working Papers DP-2015-07, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2015-07
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    References listed on IDEAS

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    1. Rajah Rasiah, 2010. "Are electronics firms in Malaysia catching up in the technology ladder?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 15(3), pages 301-319.
    2. Brian J. Aitken & Ann E. Harrison, 2022. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 6, pages 139-152, World Scientific Publishing Co. Pte. Ltd..
    3. Richard Nelson, 2008. "Economic Development from the Perspective of Evolutionary Economic Theory," Oxford Development Studies, Taylor & Francis Journals, vol. 36(1), pages 9-21.
    4. Rajah Rasiah, 2009. "Technological Capabilities of Automotive Firms in Indonesia and Malaysia-super-," Asian Economic Papers, MIT Press, vol. 8(1), pages 151-169, Winter.
    5. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
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    Cited by:

    1. Thun, Eric, 2018. "Innovation at the middle of the pyramid: State policy, market segmentation, and the Chinese automotive sector," Technovation, Elsevier, vol. 70, pages 7-19.

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    More about this item

    Keywords

    automotive industry; foreign firms; production networks; technological capabilities;
    All these keywords.

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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