Thesis (Selection of subject)Thesis (Selection of subject)(version: 336)
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Value Added in the Global Value Chains in the Automotive Industry in Slovakia
Thesis title in Czech: Přidaná hodnota v mezinárodních hodnotových řetězcích slovenského automobilového průmyslu
Thesis title in English: Value Added in the Global Value Chains in the Automotive Industry in Slovakia
Key words: GVC, input-output
English key words: GVC, input-output
Academic year of topic announcement: 2017/2018
Type of assignment: Bachelor's thesis
Thesis language: angličtina
Department: Institute of Economic Studies (23-IES)
Supervisor: Ing. Vilém Semerák, M.A., Ph.D.
Author: hidden - assigned by the advisor
Date of registration: 30.05.2018
Date of assignment: 14.06.2018
Date and time of defence: 10.09.2019 09:00
Date of electronic submission:31.07.2019
Date of proceeded defence: 10.09.2019
Reviewers: Arshad Hayat, M.Sc., Ph.D.
 
 
 
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References
STURGEON, Timothy, Johannes VAN BIESEBROECK a Gary GEREFFI. Value chains, networks and clusters: reframing the global automotive industry. Journal of Economic Geography Advance Access [online]. April 2, 2008, 1–25. DOI: 10.1093/jeg/lbn007

Petr Pavlínek (2017) Global Production Networks, Foreign Direct Investment, and Supplier Linkages in the Integrated Peripheries of the Automotive Industry, Economic Geography, 94:2, 141-165, DOI: 10.1080/00130095.2017.1393313

STURGEON, Timothy. Global value chains in the automotive industry: an enhanced role for developing countries? Int. J. Technological Learning, Innovation and Development [online]. 2011, (4).

FRIGANT, Vincent a Stéphane MIOLLAN. The geographical restructuring of the European automobile industry in the 2000s. 2014. University of Bordeaux.

PAVLINEK, Petr a Jan ŽENKA. Value creation and value capture in the automotive industry: Empirical evidence from Czechia [online]. DOI: 10.1177/0308518X15619934.

TIMMER, M. P., Dietzenbacher, E., Los, B., Stehrer, R. and de Vries, G. J. (2015). An Illustrated User Guide to the World Input–Output Database: The Case of Global Automotive Production. Review of International Economics., 23: 575–605

TIMMER, M. P., Los, B., Stehrer, R. and de Vries, G. J. (2016). An Anatomy of the Global Trade Slowdown based on the WIOD 2016 Release. GGDC research memorandum number 162, University of Groningen

PAVLÍNEK, Petr. Škoda Auto: the transformation from a domestic to a Tier Two lead firm. BRYSON, John a Jennifer CLARK. Handbook of Manufacturing Industries in the World Economy. 2015, s. 345–361.
Preliminary scope of work
Research question and motivation

In my bachelor´s thesis I will focus on added value of supply chains created by automotive industry in the Central-European region. The most important question is: “Which factors have mostly affected the added value created by concrete investors?” I will also analyse which countries have invested the most in this region. Finally, an important aspect of these investments are jobs that have created.

Central-European countries grouped in V4 are known for highly-educated labour force and lower wages. This combination has been one of the main reasons why companies have been investing into these economies. Moreover, especially in automotive industry these investments have not only created new jobs in factories, but also in supply chains.

In 2015 Slovakia, for the first time in history, manufactured more than 1 million cars in one year. Slovakia is also the biggest car producer in the world in term of cars per inhabitant. Czechia with its long history of car producing belongs to one of the most important cars producers in Europe. In Hungary and Poland automotive industry also plays an important role in their economies.

Professor Pavlinek maps this area as one of the few authors in Central Europe. Therefore, his papers, e.g. Global Production Networks, Foreign Direct Investment, and Supplier Linkages in the Integrated Peripheries of the Automotive Industry (2017), will be the main source of inspiration for me.

Contribution

Jaguar-Land Rover is finishing its €1 billion factory in the western Slovakia. It is the fourth car producer, which has decided to manufacture in that area. There also exist rumours about a fifth producer, which is planning to build its factory in the East part of Slovakia. Therefore, we can describe Slovakia as a country with high degree of dependence on automotive industry. Czechia has also tight connection to the German economy and automotive industry. In conclusion, automotive industry determines development in these countries. Since there do not exist many papers, which describes the added value in such an important industry, my thesis can help to explain linkages between producers and suppliers and quantify concrete added value created by automotive industry in these countries. I will use available data to determine, how should single governments deal with this industry. I will also be able to analyse certain risks of boss-eyed focus on this industry and show possible advantages or disadvantages of such a policy. Thanks to the Input-Output data I will be able to determine the biggest trade partners of V4 countries in automotive industry. There also exist some studies, which describe the added value created in regions of concrete country. Therefore, I plan to try to determine similar effects in regions of particular Central-European countries.

Methodology

I am going to use Input-Output tables, where I can find all trading volumes of each country in its industries. These data will allow me to analyse factor share in value added of global value chains. Concretely, I will focus on four factors: capital share in global value added, high-skilled; medium-skilled and low-skilled labour share in global value added. Thanks to these data I will be able to quantify the share of foreign value added in output of a manufactures global value chain. I will also use data from automotive supplier’s associations in these countries to determine, from more detailed perspective, how many jobs were created. Eurostat´s COMEXT data will allow me to analyse meta-data from these countries in terms of concrete products.

Outline
1) Introduction
2) Literature review
3) Hypotheses
4) Data and methodology
5) Results and discussion
6) Conclusion
7) Bibliography
Preliminary scope of work in English
Research question and motivation

In my bachelor´s thesis I will focus on added value of supply chains created by automotive industry in the Central-European region. The most important question is: “Which factors have mostly affected the added value created by concrete investors?” I will also analyse which countries have invested the most in this region. Finally, an important aspect of these investments are jobs that have created.

Central-European countries grouped in V4 are known for highly-educated labour force and lower wages. This combination has been one of the main reasons why companies have been investing into these economies. Moreover, especially in automotive industry these investments have not only created new jobs in factories, but also in supply chains.

In 2015 Slovakia, for the first time in history, manufactured more than 1 million cars in one year. Slovakia is also the biggest car producer in the world in term of cars per inhabitant. Czechia with its long history of car producing belongs to one of the most important cars producers in Europe. In Hungary and Poland automotive industry also plays an important role in their economies.

Professor Pavlinek maps this area as one of the few authors in Central Europe. Therefore, his papers, e.g. Global Production Networks, Foreign Direct Investment, and Supplier Linkages in the Integrated Peripheries of the Automotive Industry (2017), will be the main source of inspiration for me.

Contribution

Jaguar-Land Rover is finishing its €1 billion factory in the western Slovakia. It is the fourth car producer, which has decided to manufacture in that area. There also exist rumours about a fifth producer, which is planning to build its factory in the East part of Slovakia. Therefore, we can describe Slovakia as a country with high degree of dependence on automotive industry. Czechia has also tight connection to the German economy and automotive industry. In conclusion, automotive industry determines development in these countries. Since there do not exist many papers, which describes the added value in such an important industry, my thesis can help to explain linkages between producers and suppliers and quantify concrete added value created by automotive industry in these countries. I will use available data to determine, how should single governments deal with this industry. I will also be able to analyse certain risks of boss-eyed focus on this industry and show possible advantages or disadvantages of such a policy. Thanks to the Input-Output data I will be able to determine the biggest trade partners of V4 countries in automotive industry. There also exist some studies, which describe the added value created in regions of concrete country. Therefore, I plan to try to determine similar effects in regions of particular Central-European countries.

Methodology

I am going to use Input-Output tables, where I can find all trading volumes of each country in its industries. These data will allow me to analyse factor share in value added of global value chains. Concretely, I will focus on four factors: capital share in global value added, high-skilled; medium-skilled and low-skilled labour share in global value added. Thanks to these data I will be able to quantify the share of foreign value added in output of a manufactures global value chain. I will also use data from automotive supplier’s associations in these countries to determine, from more detailed perspective, how many jobs were created. Eurostat´s COMEXT data will allow me to analyse meta-data from these countries in terms of concrete products.

Outline
1) Introduction
2) Literature review
3) Hypotheses
4) Data and methodology
5) Results and discussion
6) Conclusion
7) Bibliography
 
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