Industrial Competitiveness of The Auto Parts Industries In Four Large Asian Countries The Role of Government Policy In A Challenging International Environment

Rationalization and stabilization following the Asian financial crisis of the late 1990s combined with the expansion and liberalization of regional and global trade to create significant parts industries in China, Indonesia, and the Republic of Korea. Conventional policies of stabilization and liber...

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Bibliographic Details
Main Author: Doner, Richard F.
Other Authors: Noble, Gregory W., Ravenhill, John
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2007
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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300 |a 76 p. 
653 |a Economies of Scale 
653 |a Automobile Industry 
653 |a Macroeconomics and Economic Growth 
653 |a Microfinance 
653 |a Markets and Market Access 
653 |a Investments 
653 |a Water and Industry 
653 |a Motor Vehicle Exports 
653 |a Technology Industry 
653 |a Transport Economics, Policy and Planning 
653 |a Social Protections and Labor 
653 |a Motor Vehicle 
653 |a Automobile 
653 |a Industry 
653 |a Water Resources 
653 |a Costs 
653 |a Private Sector Development 
653 |a Motor Vehicle Production 
653 |a Small Scale Enterprises 
653 |a Economic Theory and Research 
653 |a Transport 
653 |a Auto Industry 
653 |a Labor Policies 
653 |a Auto Production 
653 |a Cars 
700 1 |a Noble, Gregory W. 
700 1 |a Ravenhill, John 
700 1 |a Doner, Richard F. 
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520 |a Rationalization and stabilization following the Asian financial crisis of the late 1990s combined with the expansion and liberalization of regional and global trade to create significant parts industries in China, Indonesia, and the Republic of Korea. Conventional policies of stabilization and liberalization, however, cannot fully explain growth patterns. Japan and Korea grew into major players before liberalizing trade and investment, while even after extensive liberalization Indonesia has yet to move from extensive to intensive growth. These anomalies suggest that to explain success in the auto parts industry we need to move beyond liberalization to look at policies and institutions promoting economies of scale, skill formation, quality upgrading, supplier-linkage cooperation, and innovation. In Japan, the regional and global leader, innovative assemblers led industrial development and supported key suppliers, but the government also supported diffusion of quality control techniques and new technology to small and medium enterprises, and encouraged stable employment among core employees. Korea remains weaker on both small and medium enterprise and employment fronts, but government-encouraged consolidation around a small number of business groups, an extended period of protection, and support for export promotion led to economies of scale. Liberalization of foreign investment after the financial crisis helped ameliorate the excessive statism of earlier policies and strengthened the parts industry. In China, liberalization for WTO entry, rapid expansion in demand, and strong support by local governments encouraged a wave of foreign investment in both assembly and parts. In contrast, institutional weaknesses continue to constrain development opportunities in Indonesia