Characteristics of global automotive industry as a sector with high levels of production internationalization

Elena V. Krasova

Elena V. Krasova Vladivostok State University

Keywords: Automotive manufacturing, automotive market, concentration of production, demand for automobiles, global industry structure, multinational corporations, production internationalization.

Abstract

Research on the matter of large capital incentive sectors, which affect economy in a multiplier way, is a key component of modern economics. Global automotive industry represents a perfect example of fast-growing sector with high levels of production internationalization. Thus, it sets the pace for a lot of processes in modern global economy. The principle objective of this article is to characterize automotive industry as a leading global economic sector, which incorporates extensive geographical, organizational and technological structure. In order to achieve the objective author defines the place and role of global automotive industry in modern global economy, outlines the main features concerning nowadays sector development, specifies the conditions and factors for development of global automotive industry, examines capacity distribution of automotive industry production processes among regions of the world. During the research process authors come to a conclusion that economic growth of many developing countries is largely contingent on the development of automotive manufacturing. Geographical structure of automotive manufacturing is shifting towards Pacific Asia with China playing the leading role since 2010s. The growing demand for automobiles in developing countries, sophisticated technology employed in manufacturing and so far adequate rate of return are the main factors inducing sector development

Downloads

Download data is not yet available.

Author Biography

Elena V. Krasova, Vladivostok State University

Candidate of Economic Sciences (PhD in Economics) Vladivostok State University of Economics and Service
Associate Professor at the Department of Economics & Management Vladivostok, Russia

References

Agethen, P., Gaisbauer, F., Otto, M. & Rukzio, E. (2018). Interactive simulation for walk path planning within the automotive industry. Procedia CIRP, Vol. 72. Pp. 285-290.

Bartnik, R., Wilhelm, M. & Fujimoto, T. (2018). Introduction to innovation in the East Asian automotive industry: Exploring the interplay between product architectures, firm strategies, and national innovation systems. Technovation, Vol. 70-71. Pp. 1-6.

FSSS 2018. Russia and countries of the world 2016. Federal State Statistics Service of Russia Federation. Available at: http://www.gks.ru/bgd/regl/b16_39/Main.htm.

Gary, L., Amos, H.C. & Tehseen, A. (2018). Towards strategic development of maintenance and its effects on production performance by using system dynamics in the automotive industry. International Journal of Production Economics, Vol. 200. Pp. 151-169.

Held, M., Weidmann, D., Kammerl, D., Hollauer, C. & Lindemann, U. (2018). Current challenges for sustainable product development in the German automotive sector: A survey based status assessment. Journal of Cleaner Production, Vol. 195. Pp. 869-889.

Hertenstein, P., Williamson, P.J. (2018). The role of suppliers in enabling differing innovation strategies of competing multinationals from emerging and advanced economies: German and Chinese automotive firms compared. Technovation, Vol. 70-71. Pp. 46-58.

Kurilov, K.Yu. (2012). Formation of long-term prognosis of global automotive industry, based on fundamental factors // Corporate Finance, Vol. 6. No. 2 (22). Pp. 80-94.

Liu, Y. (2018). The processes of new product development recentralization towards a transnational emphasis in multinational corporations. Journal of International Management, In press, corrected proof, Available online at: https://www.sciencedirect.com/science/article/pii/S1075425317301369.

Liu, Y., Liu, Y. & Chen, J. (2015). The impact of the Chinese automotive industry: scenarios based on the national environmental goals. Journal of Cleaner Production, Vol. 96. Pp. 102-109.

OICA 2017. Production statistics. Internationale des Constructeurs d'Automobiles (International Organization of Motor Vehicle Manufacturers). Available at: http://www.oica.net/category/production-statistics/2017-statistics/.

Pasko, A.V. (2014). Parameters and factors of global mechanical engineering development in the beginning of the XXI century // Modern Trends in Economics and Management: a New Look, Vol. 27. Pp. 27-34.

Sandu, M.C. (2015). Reputation – an important element for automotive industry profit? Procedia Economics and Finance, Vol. 32. Pp. 1035-1041.

Shinkle, G.A., Spencer, J.W. (2012). The social construction of global corporate citizenship: sustainability reports of automotive corporations. Journal of World Business, Vol. 47 (1). Pp. 123-133.

Shirokov, S.V., Kirilovsky, A.N. & Bashkaev, D.V. (2011). Current trends and innovative ways of development of world and national automotive industry // Automotive Industry, Vol. 9. Pp. 1-4.

Tian, G., Chu, J., Hu, H. & Li, H. (2014). Technology innovation system and its integrated structure for automotive components remanufacturing industry development in China. Journal of Cleaner Production, Vol. 85. Pp. 419-432.

Tian, G., Zhang, H., Feng, Y., Jia, H. & Li, P. (2017). Operation patterns analysis of automotive components remanufacturing industry development in China. Journal of Cleaner Production, Vol. 164. Pp. 1363-1375.

UNECE 2016. Number of passenger cars per 1000 inhabitants, year 2016. The United Nations Economic Commission for Europe (UNECE). Available at: https://w3.unece.org/ PXWeb/en/CountryRanking?IndicatorCode=44.