Regional economic integration and the automobile industry: Automobile policies, division of labour, production network formation and market development in the EU and ASEAN

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Abstract:

The paper compares regional integration of the automobile industries of the European Union (EU) and the Association of Southeast Asian Nations (ASEAN). Comparing automobile policies and automobile industry development in the EU and ASEAN, the paper is specifically focusing on issues related to the division of labour, the formation of production networks as well as tendencies in intra and external regional trade. Finally, recent developments in automobile production and automobile markets, levels of motorisation, as well as wages and purchasing power in both world regions show the very different development paths of the automobile industries, and the different approach to regional economic integration. However, both the liberal market integration approach traditionally applied by the EU, as well as the approach of ASEAN to strengthen domestic industry development by pursuing export-oriented strategies are facing considerable challenges in a rapidly changing automobile industry environment. Copyright © 2018 Inderscience Enterprises Ltd.