[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/ejn/ejbmjr/v9y2021i2p164-183.html
   My bibliography  Save this article

The Development of the Automotive Industry in Post-Soviet Countries since 1991

Author

Listed:
  • Sardor Tadjiev

    (Osaka University, Japan)

  • Pierre-Yves Donze

    (Osaka University, Japan)

Abstract
This paper discusses the impact of industrial policy on the development of the automotive industry in five post-Soviet countries since 1991 (Russia, Ukraine, Belarus, Uzbekistan, and Kazakhstan). By using foreign trade and production statistics as well as qualitative data on automobile companies from business news, this paper highlights three different paths: success in post-2000 Russia and Uzbekistan, stagnation and struggle for survival in Belarus and Kazakhstan, and failure in pre-2000 Russia and Ukraine. The existence of an automotive industry before 1991 was not a factor in success because most pre-existing firms collapsed after the break-up of the Soviet Union. Instead, the growth of these post-Soviet automotive industries has essentially relied on the presence of global car makers. This research demonstrates that inward foreign direct investment and licensing agreements were fostered by the combination of protectionist policies that made importation uncompetitive and access of global firms to the large Russian market (both direct access and indirect access via a country with privileged access to Russia). This paper also highlights different strategies adopted by foreign firms: whereas the largest Western and Japanese companies invested directly in Russia, companies from China and Korea used Central Asia and Belarus as back doors to enter the Russian market.

Suggested Citation

  • Sardor Tadjiev & Pierre-Yves Donze, 2021. "The Development of the Automotive Industry in Post-Soviet Countries since 1991," Eurasian Journal of Business and Management, Eurasian Publications, vol. 9(2), pages 164-183.
    • Handle: RePEc:ejn:ejbmjr:v:9:y:2021:i:2:p:164-183
    as

    Download full text from publisher

    File URL: https://eurasianpublications.com/wp-content/uploads/2021/07/EJBM-9.2.5.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jànos Kornai, 2000. "What the Change of System from Socialism to Capitalism Does and Does Not Mean," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 27-42, Winter.
    2. Anonymous, 1991. "The Automobile Industry," Business History Review, Cambridge University Press, vol. 65(4), pages 1-1, January.
    3. Michael Peneder, 2017. "Competitiveness and industrial policy: from rationalities of failure towards the ability to evolve," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 41(3), pages 829-858.
    4. Eric Rugraff, 2008. "Are the FDI policies of the Central European countries efficient?," Post-Communist Economies, Taylor & Francis Journals, vol. 20(3), pages 303-316.
    5. Panagiotis Liargovas & Dionysios Chionis, 2001. "Economic Integration between the European Union and the Transition Economies of Central European Initiative Countries," Post-Communist Economies, Taylor & Francis Journals, vol. 13(1), pages 57-70.
    6. Lev Freinkman & Andrei Yakovlev, 2015. "Institutional frameworks to support regulatory reform in middle-income economies: lessons from Russia's recent experience," Post-Communist Economies, Taylor & Francis Journals, vol. 27(3), pages 354-369, September.
    7. Andrzej Brzeski & Enrico Colombatto, 1999. "Can Eastern Europe Catch Up?," Post-Communist Economies, Taylor & Francis Journals, vol. 11(1), pages 5-25.
    8. Eun Young Bae & Jai S. Mah, 2019. "The role of industrial policy in the economic development of Uzbekistan," Post-Communist Economies, Taylor & Francis Journals, vol. 31(2), pages 240-257, March.
    9. Eric Rugraff & Magdolna Sass, 2016. "Voting for staying. Why didn’t the foreign-owned automotive component suppliers relocate their activity from Hungary to lower-wage countries as a response to the economic crisis?," Post-Communist Economies, Taylor & Francis Journals, vol. 28(1), pages 16-33, January.
    10. John Humphrey & Antje Oeter, 2000. "Motor Industry Policies in Emerging Markets: Globalisation and the Promotion of Domestic Industry," Palgrave Macmillan Books, in: John Humphrey & Yveline Lecler & Mario Sergio Salerno (ed.), Global Strategies and Local Realities, chapter 3, pages 42-71, Palgrave Macmillan.
    11. Demekas, Dimitri G. & Horvath, Balazs & Ribakova, Elina & Wu, Yi, 2007. "Foreign direct investment in European transition economies--The role of policies," Journal of Comparative Economics, Elsevier, vol. 35(2), pages 369-386, June.
    12. José Guimón* & Sergey Filippov, 2012. "Competing for High-quality FDI: Management Challenges for Investment Promotion Agencies," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 4(2), pages 25-44, July.
    13. Robert Feinberg & Mieke Meurs, 2005. "Market Reform, Infrastructure and Exchange Rate Passthrough in Central and Eastern Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 17(1), pages 21-32.
    14. Peter Wad & V.G.R. Chandran Govindaraju, 2011. "Automotive industry in Malaysia: an assessment of its development," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 11(2), pages 152-171.
    15. Nebojša Stojčić & Zoran Aralica, 2018. "(De)industrialisation and lessons for industrial policy in Central and Eastern Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 30(6), pages 713-734, November.
    16. Vladimir Popov, 1999. "Investment, Restructuring and Performance in Transition Economies," Post-Communist Economies, Taylor & Francis Journals, vol. 11(4), pages 445-462.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Romualdas Ginevičius & Agnė Šimelytė, 2011. "Government incentives directed towards foreign direct investment: a case of central and eastern europe," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 12(3), pages 435-450, May.
    2. Kozo Otsuka & Kaoru Natsuda, 2016. "The Determinants Of Total Factor Productivity In The Malaysian Automotive Industry: Are Government Policies Upgrading Technological Capacity?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-18, September.
    3. Laurila, Juhani & Singh, Rupinder, 2000. "Sequential reform strategy: The case of Azerbaijan," BOFIT Discussion Papers 8/2000, Bank of Finland Institute for Emerging Economies (BOFIT).
    4. Petr Pavlínek, 2002. "Transformation of the Central and East European Passenger Car Industry: Selective Peripheral Integration through Foreign Direct Investment," Environment and Planning A, , vol. 34(9), pages 1685-1709, September.
    5. repec:zbw:bofitp:2000_008 is not listed on IDEAS
    6. Laurila, Juhani & Singh, Rupinder, 2000. "Sequential reform strategy : The case of Azerbaijan," BOFIT Discussion Papers 8/2000, Bank of Finland, Institute for Economies in Transition.
    7. Anthony Black, 2009. "Location, Automotive Policy, and Multinational Strategy: The Position of South Africa in the Global Industry since 1995," Growth and Change, Wiley Blackwell, vol. 40(3), pages 483-512, September.
    8. Ruigrok, Winfried & Tate, John J, 1995. "Public Testing And Research Centers In Japan," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt3581k5pd, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
    9. Susan Helper & Mari Sako, 2010. "Management innovation in supply chain: appreciating Chandler in the twenty-first century," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(2), pages 399-429, April.
    10. repec:dgr:rugsom:97b05 is not listed on IDEAS
    11. Keun Lee & Di Qu & Zhuqing Mao, 2021. "Global Value Chains, Industrial Policy, and Industrial Upgrading: Automotive Sectors in Malaysia, Thailand, and China in Comparison with Korea," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 275-303, April.
    12. A Lagendijk & G A van der Knaap, 1993. "Foreign Involvement in the Spanish Automobile Industry: Internalising versus Networking," Environment and Planning A, , vol. 25(11), pages 1663-1676, November.
    13. Gábor Péli & Bart Nooteboom, 1997. "Simulation of Learning in Supply Partnerships," Computational and Mathematical Organization Theory, Springer, vol. 3(1), pages 43-66, March.
    14. Michael Peneder & Spyros Arvanitis & Christian Rammer & Tobias Stucki & Martin Wörter, 2022. "Policy instruments and self-reported impacts of the adoption of energy saving technologies in the DACH region," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(2), pages 369-404, May.
    15. Peter Chobanov & Amine Lahiani & Nikolay Nenovsky, 2010. "Money Market Integration and Sovereign CDS Spreads Dynamics in the New EU States," William Davidson Institute Working Papers Series wp1002, William Davidson Institute at the University of Michigan.
    16. CĂLIN Adrian Cantemir & POPOVICI Oana Cristina, 2015. "The Effects of Enhancing Competitiveness on FDI Inflows in CEE Countries," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.
    17. repec:dgr:rugsom:95b39 is not listed on IDEAS
    18. Sabina Silajdzic & Eldin Mehic, 2022. "How Effective Is Tax Policy in Attracting Foreign Direct Investments in Transition Countries?," Central European Business Review, Prague University of Economics and Business, vol. 2022(1), pages 19-39.
    19. Mehrdad Vahabi, 2021. "Introduction: a special issue in honoring Janos Kornai," Public Choice, Springer, vol. 187(1), pages 1-13, April.
    20. Murat A. Yülek, 2017. "On the Middle Income Trap, the Industrialization Process and Appropriate Industrial Policy," Journal of Industry, Competition and Trade, Springer, vol. 17(3), pages 325-348, September.
    21. Carsten A. Holz, 2005. "China's Reform Period Economic Growth: Why Angus Maddison Got It Wrong and What That Means," Development and Comp Systems 0504012, University Library of Munich, Germany.
    22. Mico APOSTOLOV, 2016. "Ownership And Control Structures A Case Study," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 8(2), pages 23-37, June.
    23. Matkovskyy, Roman & Bouraoui, Taoufik & Hammami, Helmi, 2016. "Analysing the financial strength of Tunisia: An approach to estimate an index of financial safety," Research in International Business and Finance, Elsevier, vol. 38(C), pages 485-493.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ejn:ejbmjr:v:9:y:2021:i:2:p:164-183. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Esra Barakli (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.