1st ICAI 2020

International Conference on Automotive Industry 2020

Mladá Boleslav, Czech Republic

Value Added Trade Data in Automotive Research Jana Vlčková University of Economics in Prague Faculty of international relations, Department of World Economy Nám. W. Churchilla 1938/4, Praha 3, 130 67 Czech Republic e-mail: jana.vlckova@vse.cz

Abstract In the last decade, several datasets based on input-output models were developed, which enable to map trade in value added. New indicators were proposed, which allow to compare the position of countries in global value chains. The automotive industry is widely described in the value chain analysis due to its high fragmentation as well as economic and political significance. This paper aims to sum up the latest research based on value added data in the automotive sector. This includes the description of available datasets and indicators as well as the most influential papers in the automotive industry based on these datasets and their key findings. Future research prospects, as well as policy implications, are also considered. Keywords: automotive, global value chains, value added data JEL Classification: C67, F19, L62 1. Introduction Over the last three decades, we have witnessed a significant increase in international trade associated with growing integration of several emerging economies into the global economy. The gradual increase in world trade has been associated with higher fragmentation of production and a bigger role of intermediate inputs. More attention has been given to global value chains since this approach is more successful in explaining these differences. The concept of value chains has been introduced by (Porter, 1985). According to Kaplinsky and Morris (2001) global value chains (GVCs) describe the sequence of production activities that are distributed across more than one country. In economic geography, global production networks (GPN) concept is widespread, which captures the complex organizational and geographical network of production, distribution, and consumption (Coe et al., 2008). Despite several differences, both concepts are somewhat similar. In general, GVCs cover the whole production process. In the beginning, it is research and development, design, sourcing of primary products, the middle stage includes production of intermediate products, final assembly, packaging, branding, with marketing of the product and after-sale services being the final step. These activities are split across various geographic locations and affected by many aspects, including regulatory framework, financial system, logistics, and others. The early stage, such as RandD and design and final stage of branding and marketing, is associated with the highest value

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