Dispersion of automobile industry supplier network as precondition for regional underdevelopment? (comparative study Serbia, Italy and Czech Republic)
Abstract
The aim of the paper is to analyze relationship between Fiat Automobile Industry supplier network, its geographical distribution and influence on regional development, and make comparison to similar situation in Italy and Czech Republic during automobile industry development. The industry in mentioned countries had and still have significant state support through subsides, taxes reliefs and employment programs, especially in regions defined as underdeveloped. The research results related with Italy and Czech Republic are opposite, because state supporting programs in Czech Republic gave positive results in automobile industry development and its relation with regional development. The regions with state supporting programs developed specific economy structure which resulted in their better position within national economy. On the other hand, case of Italy and its supporting programs showed inefficiency of state in regional development because most of the regions, after auto industry closing, experienced fall in GDP, employment and exports. The results of research showed consistency with Italian results, because found out strong concentration within Sumadija region along with low level of export orientation, making such region highly dependable on Fiat automobile industry. On the other hand, within Vojvodina region, such supplier network has been developed with export oriented suppliers, included in international automobile industry value chain, making the region more flexible and more resistant on future FIAT strategic decisions.
References
Barnes, J. and Kaplinsky, R. (2000) ‘Globalization and the Death of the Local Firm? The Automobile Components Sector in South Africa’, Regional Studies 34: 797–812.
Conti, S., Enirietti, A., (1995), The Italian automobile industry and the case of Fiat: on country, one company, one market? in: Towards new map of automobile manufacturing in Europe: new production concepts and spatial restructuring, Springer
Czaban, L. and Henderson, J. (1998) ‘Globalization, Institutional Legacies and Industrial Transformation in Eastern Europe’, Economy and Society 27: 585–613.
Domanski B. (2003) Industrial change and foreign direct investment in the postsocialist economy The Case Of Poland, European Urban and Regional Studies 10(2): 99–118
Freyssenet, M., Mair, A., Shimizu, K. and Volpato, G. (1998) One Best Way? Trajectories and Industrial Models of the World’s Automobile Producers. Oxford: Oxford University Press.
Havas, A. (1997) ‘Foreign Direct Investment and Intraindustry Trade: the Case of the Automotive Industry in Central Europe’, in D. Dyker (ed.) The Technology of Transition, pp. 211–40. Budapest: Central European University Press.
Havas, A. (2000a) ‘Local, Regional and Global Production Networks: Reintegration of the Hungarian Automotive Industry’, in C. Von Hirschhausen and J. Bitzer (eds) The Globalization of Industry and Innovation in Eastern Europe: from Post-socialist Restructuring to International Competitiveness, pp. 95–127. Cheltenham and Northampton, MA: Edward Elgar.
Havas, A. (2000b) ‘Changing Patterns of Inter- and Intra- Regional Division of Labour: Central Europe’s Long and Winding Road’, in J. Humphrey, Y. Lecler and M.S. Salerno (eds) Global Strategies and Local Realities: the Auto Industry in Emerging Markets, pp. 234–62. Houndsmill, London and New York: Macmillan and St Martin’s Press.
Kaplinsky, R. (2000) Globalisation and unequalisation: what can be learned from value chain analysis?. Journal of Development Studies, 37: 117–146
Kaplinsky, R., Readman, J. (2005) Globalization and upgrading: what can (and cannot) be learnt from international trade statistics in the wood furniture sector?, Industrial and Corporate Change, 14: 679–703
Meyer, K.E. (2000) ‘International Production Networks and Enterprise Transformation in Central Europe’, Comparative Economic Studies 42: 135–50.
Pavlınek, P., Zenka,J., (2010), ‘’Upgrading in the automotive industry: firm-level evidence from Central Europe’’, Journal of Economic Geography, 1–28
Pavlínek, P. (2003) ‘Transformation of the Czech Automotive Components Industry through Foreign Direct Investment’, Eurasian Geography and Economics 44: 184–209.
Pavlínek, P. (2004) ‘Regional Development Implications of Foreign Direct Investment in Central Europe’, European Urban and Regional Studies 11 (1): 47–70.
Pavlinek P, Žížalová P. (2014) Linkages and spillovers in global production networks: Firm-level analysis of the Czech automotive industry, Journal of economic geography 16 (2):331-363
Pavlınek, P., Janak, L. (2007) Regional restructuring of the Skoda Auto supplier network in the
Czech Republic. European Urban and Regional Studies, 14: 133–155.
Pavlınek, P., Domanski, B., Guzik, R. (2009) Industrial upgrading through foreign direct investment in Central European automotive manufacturing. European Urban and Regional Studies, 16: 43–63.
Pavlínek, P. (2002a) ‘Transformation of Central and East European Passenger Car Industry: Selective Peripheral Integration through Foreign Direct Investment’, Environment and Planning A 34: 1685–709.
Pavlínek, P. (2002b) ‘Restructuring the Central and Eastern European Automobile Industry: Legacies, Trends and Effects of Foreign Direct Investment’, Post- Soviet Geography and Economics 43: 41–77.
Pavlinek, P., (2015), Foreign direct investment and the development of the automotive industry in Central and Eastern Europe, Foreign investment in eastern and southern Europe after 2008: Still a lever of growth? edited by Béla Galgóczi, Jan Drahokoupil, Magdalena Bernaciak
Radosevic, S., Rozeik, A. (2005) ‘Foreign Direct Investment and Restructuring in the Automotive Industry in Central and East Europe’, Working Paper 53, Centre for the Study of Economic and Social Change in Europe, University College London.
Richet, X. and Bourassa, F. (2000) ‘The Reemergence of the Automotive Industry in Eastern Europe’, in C. Von Hirschhausen and J. Bitzer (eds) The Globalization of Industry and Innovation in Eastern Europe: from Postsocialist Restructuring to International Competitiveness, pp. 59–94. Cheltenham and Northampton, MA: Edward Elgar.
Rugraf, E.,(2010), FDI and Supplier-Oriented Upgrading in the Czech Motor Vehicle Industry, Regional Studies, Vol.44, Issue 5, 627-638
Tulder, R. and Ruigrok, W. (1998) ‘International Production Networks in the Auto Industry: Central and Eastern Europe as the Low End of the West European Car Complexes’, in J. Zysman and A. Schwartz (eds) Enlarging Europe: the Industrial Foundations of a New Political Reality, pp. 202–37, University of California International and Area Studies Digital Collection, Research Series
Withford, Enrietti, (2005), Surviving the Fall of a King: The Regional Institutional Implications of Crisis at Fiat Auto, International Journal of Urban and Regional Research, Volume 29, Issue 4, pages 771–795,