Crisis and Protection in the Automotive Industry: A Global Value Chain Perspective

26 Pages Posted: 20 Apr 2016

See all articles by Timothy Sturgeon

Timothy Sturgeon

Massachusetts Institute of Technology (MIT)

Johannes Van Biesebroeck

K.U.Leuven; Centre for Economic Policy Research (CEPR)

Date Written: September 1, 2009


In this paper the authors apply global value chain (GVC) analysis to recent trends in the global automotive industry, with special attention paid to government interventions triggered by the recent economic crisis. The authors first highlight some of the defining characteristics of GVCs in this important industry, especially the unusually strong regional structure of production and sales. National political institutions create pressure for local content, which drives production close to end markets, where it tends to be organized nationally or regionally. They then examine policy reactions to the recent economic crisis, and provide some discussion of the government interventions in the industry. The authors end with a number of policy conclusions that highlight the likely impact of the interventions on the evolution GVCs and the growth of the industry in developing countries.

Keywords: Markets and Market Access, Economic Theory & Research, Labor Policies, Water and Industry, Debt Markets

Suggested Citation

Sturgeon, Timothy and Van Biesebroeck, Johannes, Crisis and Protection in the Automotive Industry: A Global Value Chain Perspective (September 1, 2009). World Bank Policy Research Working Paper No. 5060, Available at SSRN:

Timothy Sturgeon (Contact Author)

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
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Cambridge, MA 02139-4307
United States

Johannes Van Biesebroeck

K.U.Leuven ( email )

Naamsestraat 69
B-3000 Leuven
+3216326793 (Phone)
+3216326796 (Fax)


Centre for Economic Policy Research (CEPR) ( email )

United Kingdom

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