Contribution of the Automotive Industry to the Domestic Economy, From a Center-Periphery Point of View

Gábor Túry


The paper investigates the contribution of the automotive industry to the domestic economies from a regional development point of view. The research examines the economies of the core countries (Germany, France and Italy) and the semi-peripheral countries (Spain, Portugal, Czech Republic, Hungary, Poland, Romania and Slovakia) in Europe comparing the results to the previous (mainly U.S.) researches. The paper will examine how the center-periphery location and the position in the global automotive supply chain affect the economic role of the industry as well as the automotive-related activities.

Vehicle production is a vertically integrated system, in which the industry also involves many other activities that sell their products to other industries as well, therefore approaches regarding automotive-related activities are different in terms of scale of activities. Moreover, contribution of the automotive industry to the economy can be interpreted in a broad way, including downstream activities related to the use of the motor vehicle, and the socioeconomic employment as well. The broader definition of the automotive industry in this paper is based on this spill-over effect. The study defines the automotive spill-overs based on the nomenclature of the Statistical Classification of Economic Activities in the European Community (NACE) to show how these activities contribute to employment, production and value added in the examined countries, highlighting the differences between the individual countries and different regions.

Palabras clave

automotive industry, spill-overs, European Union, Central and Eastern Europe

Texto completo:

PDF (English) XML (English)


ACEA, Automobile Industry Pocket Guide 2018-2019. Brussels, European Automobile Manufacturers’ Association, 2018

Aláez-Aller, Ricardo and Gil-Canaleta, Carlos and Ullibarri-Arce, Miren, “Foreign investment in eastern and southern Europe”, in Galgóczi, Béla and Drahokoupil, Jan and Bernaciak, Magdalena (eds.), Foreign investment in eastern and southern Europe after 2008. Still a lever of growth? Brussels, European Trade Union Institute, 2015, pp. 139-170.

Barta, Györgyi, “Central and Eastern European Automotive Industry in European Context”, in Rechnitzer, János and Smahó, Melinda (eds.), Vehicle Industry and Competitiveness of Regions in Central and Eastern Europe, Győr, Universitas-Győr Nonprofit Kft., 2012. pp. 33-70.

Chung, Wilbur and Mitchell, Will and Yeung, Bernard, ”Foreign direct investment and host country productivity: the American automotive component industry in the 1980s”, Journal of International Business Studies, 2003, number 34, pp. 199-218.

Eurostat, Statistical classification of economic activities in the European Community, Luxembourg, Eurostat Methodologies and Working papers, Office for Official Publications of the European Communities, 2008, pp. 185-187.

Eurostat ComExt database

Fulton, George A. and Grimes, Donald R. and Schmidt, Lucie G. and McAlinden, Sean P. and Richardson, Barbara C., Contribution of the Automotive Industry to the U.S. Economy in 1998: The Nation and Its Fifty States, Ann Arbor, MI, The University of Michigan Institute for Labor and Industrial Relations, The University of Michigan Transportation Research Institute, Office for the Study of Automotive Transportation, and the Center for Automotive Research, 2001

Girardi, Filippo, Market Outlook - Update 2016. EUROBAT Annual forum Berlin, 16-17 June 2016

Hanzl-Weiss, Doris and Stehrer, Robert, Cars “Made in Europe”. Croatian Economic Survey: volume 16, number 1, 2014, pp. 49-74.

Heneric, Oliver, and Licht, Georg and Sofka, Wolfgang, (eds.), Europe's Automotive Industry on the Move: Competitiveness in a Changing World, Heidelberg, Physica-Verlag, 2005

Hill, Kim and Menk, Debra Maranger and Cregger, Joshua, Contribution of the Automotive Industry to the Economies of All Fifty States and the United States. Washington, DC, Center for Automotive Research, January, 2015

Humphrey, John and Memedovic, Olga The global automotive industry value chain: What Prospects for Upgrading by Developing Countries, Vienna, United Nations Industrial Development Organization 2003

JAMA, The motor industry of Japan 2016, Tokyo, Japan Automobile Manufacturers Association, Inc.

Lengyel, Balázs, “Regional Clustering Tendencies of the Hungarian Automotive and ICT Industries in the First Half of the 2000s” in Welfens, Paul J.J. (ed.), Clusters in Automotive and Information & Communication Technology, Berlin, Heidelberg, Springer, 2012. pp 113-134.

Lung, Yannick, (ed.), Coordinating competencies and knowledge in the European automobile system - CoCKEAS, Luxembourg, Office for Official Publications of the European Communities, 2007

McAlinden, Sean P. and Smith, Brett C., The changing structure of the U.S. automotive parts industry, Ann Arbor, MI, University of Michigan Transportation Research Institute, Office for the Study of Automotive Transportation, 1993

McAlinden, Sean P. and Hill, Kim and Swiecki, Bernard, Economic Contribution of the Automotive Industry to the U.S. Economy – An Update, Ann Arbor, MI, Center for Automotive Research, 2003

McKinsey & Company, Lighting the way: Perspectives on the global lighting market, New York, McKinsey & Company, 2012

Mudambi, Ram, “Location, Control and Innovation in Knowledge-Intensive Industries”, Journal of Economic Geography, volume 8, number 5, 2008, pp. 699-725.

Nunnenkamp, Peter, “The German automobile industry and Central Europe’s integration into the international division of labour: Foreign production, intra-industry trade and labour market repercussions”. Madrid, Universidad Complutense de Madrid, Papeles del Este: Transiciones poscomunistas, number 9, 2004

Pavlínek, Petr, “Transformation of the Central and East European passenger car industry: selective peripheral integration through foreign direct investment”, Environment and Planning A, volume 34, number 9, 2002, pp. 1685-1709.

Pavlínek, Petr, “The impact of the 2008–2009 crisis on the automotive industry: global trends and firm-level effects in Central Europe”, European Urban and Regional Studies volume 22, number 1, 2015, pp. 20-40.

Pavlínek, Petr, Dependent Growth: Foreign Investment and the Development of the Automotive Industry in East-Central Europe, Basel, Springer International Publishing AG, 2017 47

Pillot, Christophe, The worldwide battery market 2011-2025. Conference “Batteries 2012” Nice, France. Avicenne Energy, October 24-26, 2012

Schulten, Thorsten and Müller, Torsten, Wages and collective bargaining during the European economic crisis - developments in the European manufacturing industry – report for the industriAll European Trade Union collective bargaining and social police conference, Vienna, 12-13 June 2014

Sturgeon, Timothy J. and Florida, Richard, “Globalization and Jobs in the Automotive Industry”, MIT IPC Working Paper 00-012, 2000

Sturgeon, Timothy J. and Van Biesebroeck, Johannes and Gereffi, Gary, “Value chains, networks and clusters: Reframing the global automotive industry”, Journal of Economic Geography, volume 8, number 3, 2008, pp. 297-321.

Sturgeon, Timothy J. and Memedovic, Olga, Mapping Global Value Chains: Intermediate Goods Trade and Structural Change in the World Economy, Vienna, UNIDO, Working Paper 05/2010, 2011

Tirpák, Marcel and Kariozen, Agata, The Automobile Industry in Central Europe, Washington, D.C., International Monetary Fund, IMF Note, 2006.

van Tulder, Rob and Ruigrok, Winfried, European Cross-National Production Networks in the Auto Industry: Eastern Europe as the Low End of European Car Complex, Berkeley, CA, Berkeley Roundtable on the International Economy, Working Paper 121, 1998

[Query: August 15, 2017]


Enlaces refback

  • No hay ningún enlace refback.

Licencia Creative Commons
TLA-MELAUA por Benemérita Universidad Autónoma de Puebla se distribuye bajo una Licencia Creative Commons Atribución-NoComercial-CompartirIgual 4.0 Internacional.
Basada en una obra en