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Flexible Automation and Location of Production in Developing Countries

Author

Listed:
  • Alcorta, Ludovico

    (United Nations University, Institute for New Technologies)

Abstract

This paper analyses and assesses the potential impact of microelectronics-based forms of flexible automation (FA) on the location of industrial production in developing countries. It suggests that for developing countries as a whole the diffusion of FA does not favor the establishment of a local engineering industry. The converging production and cost conditions worldwide, the higher optimal scale plants and the growing infrastructure requirements arising out of FA demand cost reducing, quality enhancing, learning, investment, research and development, marketing and increasing market share efforts beyond most local firms' possibilities. Yet, possibilities for location in specific countries may arise out the skill and possibly capital saving characteristics of the new technologies, the high labor costs of simple assembly processes in developed countries, the available technical and financial capability of very large domestic firms, the size of the respective market and the capacity of each country to introduce creative and innovative policies.

Suggested Citation

  • Alcorta, Ludovico, 1998. "Flexible Automation and Location of Production in Developing Countries," UNU-INTECH Discussion Paper Series 1998-05, United Nations University - INTECH.
    • Handle: RePEc:unm:unuint:199805
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    File URL: https://www.merit.unu.edu/publications/discussion-papers/9805.pdf
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    Cited by:

    1. Anthony Black, 2001. "Globalization and restructuring in the South African automotive industry," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(6), pages 779-796.
    2. Ulas Arslan & Erkan Erdil, 2003. "New Technologies and Changes in Work Organization: A Survey," STPS Working Papers 0303, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Mar 2003.
    3. Ludovico Alcorta, 2000. "Government policies for succesful inter-firm technological collaboration in MERCOSUR," Apuntes. Revista de ciencias sociales, Fondo Editorial, Universidad del Pacífico, vol. 27(47), pages 175-209.

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