Measuring the impact of industrial and trade policies in the Auto-industry in the post-liberalization era: focus on growth and domestic value added in emerging countries (1995-2015).

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Type de publication:

Conference Paper


Gerpisa colloquium, N/A, Cachan - Paris (2017)


From the 1990s the processes of economic liberalization along with the implementation of new production paradigms (i.e. lean production and modularization) in developing countries have changed the patterns of industrialization in their automobile sector. Nowadays, countries vie for gaining shares of the Global Value Chains (as opposed to developing a fully national industry) and there is a greater dependence on foreign capital as both OEMS and first tier suppliers are dominated by multinational companies. This paper comparatively analyzes four case-studies: two countries which have pursued interventionist industrial policies (Brazil and Malaysia) and two countries which have followed more liberal approaches (Mexico and Thailand). In order to measure the evolution of each national case this paper analyzes both the growth of production and the domestic proportion of value added on exports, using data from OICA and from the WTO-OECD “Trade in Value Added Initiative – TiVA” respectively. Three conclusions can be reached from the results: 1) there is a trade-off between the growth of the industry (in terms of units produced) and the local value added by the national economy; 2) the sustainability of a liberal model of industrialization of the “maquiladora” type is compromised by the rise of protectionism in the home countries of OEMs (which is the case of the American OEMs operating in Mexico); and 3) an interventionist industrial policy is not enough to ensure high local value added, the quality and type of intervention must be assessed.

Copyright© Gerpisa
Concéption Tommaso Pardi
Administration Géry Deffontaines

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