Hostname: page-component-745bb68f8f-5r2nc Total loading time: 0 Render date: 2025-01-12T15:34:09.509Z Has data issue: false hasContentIssue false
  • English
  • Français

Shifting gears: industrial policy and automotive industry after the 2008 financial crisis

Published online by Cambridge University Press:  20 January 2017

Seung-Youn Oh
Get access Rights & Permissions [Opens in a new window]

Abstract

Apart from being one of the hardest hit sectors during the 2008 financial crisis, the auto sector is also a prominent sector where emerging auto markets such as China have fared relatively well compared to their competitors in North America and Europe. This paper examines various ways that nations have shifted their policy gears to revive and restructure the automotive industry by using the case studies of the USA, France, and China. New sets of policy initiatives are contingent on particular industrial and institutional contexts, but both developed and developing countries have employed wide range of “murky” protectionist measures. This makes it unlikely for the WTO member countries to take a naming and shaming approach and file a case at the WTO level, which poses challenges to the WTO rules and trade liberalization.

Type
Research articles
Information
Business and Politics , Volume 16 , Issue 4: Special Issue: Industrial Policy in the Post-Crisis Era: Guest Editor: Vinod K. Aggarwal , December 2014 , pp. 641 - 665
Copyright
Copyright © V.K. Aggarwal 2014 and published under exclusive license to Cambridge University Press 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aggarwal, Vinod K., and Evenett, Simon J. 2010. “Financial Crisis, ‘New’ Industrial Policy, and the Bite of Multilateral Trade Rules.” Asian Economic Policy Review 5 (2): 221–244.CrossRefGoogle Scholar
Aggarwal, Vinod K., and Evenett, Simon J. 2012. “Industrial Policy Choice During the Crisis Era.” Oxford Review of Economic Policy 28 (2): 261–283.Google Scholar
Bai, Xue. 2012. “The Effects of the 2007–2009 Economic Crisis on Global Automobile Industry.” Applied Economics Thesis at Department of Economics and Finance, State University of New York College at Buffalo.Google Scholar
Baldwin, Richard. 1985. The Political Economy of US Import Policy. Cambridge, MA: MIT Press.Google Scholar
Baldwin, Richard, and Evenett, Simon J. 2009. The Collapse of Global Trade, Murky Protectionist, and the Crisis: Recommendations for the G20. London: Centre for Economic Policy Research: http://www.ycsg.yale.edu/focus/papers/Protectionism.pdf.Google Scholar
Barfield, Claude. 2009. “Protectionism and the Global Economic Crisis.” American Enterprise Institute. Accessed 21 September 2014. http://www.aei.org/article/economics/fiscal-policy/protectionism-and-the-global-economic-crisis/.Google Scholar
Brunel, Claire, and Hufbauer, Gary C. 2009. “Money for the Auto Industry: Consistent with WTO Rules.” Peterson Institute for International Economics. Number PB09-4, February 2009. http://www.iie.com/publications/pb/pb09-4.pdf Google Scholar
Chang, Crystal. 2011. “Stumbling Toward Capitalism: The State, Global Production Networks, and the Unexpected Emergence of China's Independent Auto Industry.” Ph.D. diss., Berkeley: University of California.Google Scholar
European Union Trade Commission. 2010. Trade, Growth and World Affairs: Trade Policy as a Core Component of the EU's 2020 strategy. European Trade Commission. http://trade.ec.europa.eu/doclib/docs/2010/november/tradoc_146953.pdf.Google Scholar
Gereffi, G., Humphrey, J., and Sturgeon, T. 2005. “The Governance of Global Value Chains.” Review of International Political Economy 12 (1): 78–104.Google Scholar
Grossman, Gene M. and Helpman, E. 1994. “Protection for Sale.” The American Economic review 84 (4): 833–850. http://pages.uoregon.edu/bruceb/Andrea.pdf.Google Scholar
Hillman, A. 1989. The Political Economy of Protection. London: Harwood Academic Publisher.Google Scholar
Hiscox, M. 2002. International Trade and Political Conflict. Princeton, NJ: Princeton University Press.CrossRefGoogle Scholar
ILO. 2010. “Automotive Industry: Trends and Reflections.” The Global Economic Crisis Sectoral Coverage. Working Paper 278. International Labor Organization.Google Scholar
IMVP. 2009. “The Global Automotive Industry Crisis: A Way Ahead.” An IMVP Position Paper. Cambridge, Massachusetts: IMVP, MIT.Google Scholar
James, William E. 2008. “The US Financial Crisis, Global Financial Turmoil, and Developing Asia: Is the Era of high Growth at an End?” ADB Economics Working Paper Series. Mandaluyong City, Philippines: Asian Development Bank.Google Scholar
Matechak, Jason, and Gerson, Brett. 2010. “Can China's Government Procurement Market Be Cracked?” China Business Review 37 (3): 34.Google Scholar
OECD. 2010. “The Automobile Industry in and Beyond The Crisis.” Economics Department Working Paper No. 745. Paris: Organization for Economic Cooperation and Development.Google Scholar
Oh, Seung-Youn. 2013. “Fragmented Liberalization in the Chinese Automotive Industry: The Political Logic behind Beijing Hyundai's Success in the Chinese Market.” China Quarterly 216: 920–945.Google Scholar
Oh, Seung-Youn. 2014. “Gone with the Wind: How China Outsmarts the WTO Rulings in the Wind Industry.” Asian Survey (In Press).Google Scholar
Olson, M. 1965. The Logic of Collective Action: Public Goods and the Theory of Groups. Cambridge, MA: Havard University Press.Google Scholar
Pilat, D., Cimper, A., Olsen, K., and Webb, C. 2008. “The Changing Nature of Manufacturing in OECD Economies.” In Staying Competitive in the Global Economy: Compendium of Studies on Global Value Chains. Paris: Organization for Economic Cooperation and Development.Google Scholar
PWC. 2009. Automotive Review. Global Automotive Review. London: PWC Automotive Institute.Google Scholar
Rodrik, Dani. 2010. “The Return of Industrial Policy.” Project Syndicate. 12 April 2010. Accessed 22 September 2014. http://www.project-syndicate.org/commentary/the-return-of-industrial-policy.Google Scholar
Teng, Rachel. 2012. China's Auto Sector Development and Policies: Issues and Implications. Washington DC: Congressional Research Service.Google Scholar
United Nations Conference on Trade and Development. 2012. World Investment Report 2012: Towards a New Generation of Investment Policies. Geneva: UNCTAD.Google Scholar
United Nations Industrial Development Organization. 2011. Industrial Development Report. Vienna: UNIDO.Google Scholar
USTR. 2009. “USTR Report to Congress on China's WTO Compliance.” USTR News.Google Scholar
USTR. 2012. “Obama Administration Challenges China's Unfair Imposition of Duties on America-Made Automobiles.” USTR Press Release.Google Scholar