International Automotive Production Networks: How the web comes together

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Abstract:

This paper intends to highlight the structural characteristics of the world automotive trade network and analyze the dynamics of its spatial distribution over time. We use data on trade flows for 172 countries for the years 1996 and 2009 and apply social network analysis tools. The empirical results show that auto network has become denser, more extensive and integrated over time, depicting a centre-periphery structure in which regional clusters play a prominent role. Strong agglomeration forces generated by companies’ desire for large and rich market access with minimum transportation costs are balanced by the search for new high-potential markets.