Central European Business Review 2022, 11(4):1-24 | DOI: 10.18267/j.cebr.301

Sources of Value-Added in V4 automotive GVCs: The Case of Transport and Storage Services and Firm Level Technology Absorption

Marek Minárik ORCID...1, Stanislav Zábojník ORCID...2, Janka Pásztorová ORCID...3
1 University of Economics in Bratislava, Faculty of Commerce, Department of International Trade, Bratislava, Slovakia, marek.minarik@euba.sk
2 University of Economics in Bratislava, Faculty of Commerce, Department of International Trade, Bratislava, Slovakia, stanislav.zabojnik@euba.sk
3 University of Economics in Bratislava, Faculty of Commerce, Department of International Trade, Bratislava, Slovakia, janka.pasztorova@euba.sk

Within V4 automotive Global Value Chains (GVCs), technologies absorbed by the corporate sector represent a significant impact on the level of value-added created within the economy. Sectoral and geographic targeting of our research is determined by the export of motor vehicles, trailers, and semi-trailers produced in the V4 countries. The article’s main objective was to investigate the role of services provided by V4 countries within GVCs with an emphasis on transport and storage. The authors used the method of linear regression analysis to answer two central research questions. Is there a synergic or spillover effect within the automotive clusters of the V4 countries in creating value-added originating in the logistic services? What role absorption of technology at the firm level in EU27 countries (the most important trading partners of the V4 countries) plays in creating value-added in the V4 automotive sector? Authors found differentiated results within V4 countries, confirming the hypothesis related to technology absorption.
Implications for Central European audience: Despite high V4 export performance, the research suggests how to increase the value-added through higher involvement within GVCs (particularly the automotive industry). The paper demonstrates a positive impact of importing transport services from the EU countries to some V4 countries (Slovakia, Czechia, and Poland) and its value-added content in gross exports. For any V4 country, an increase in the quality of the business environment of EU trade partners (measured as the corporate level of technology absorption) results in a lower value-added creation, quite significantly, with lower effect in the case of Czechia, but more than 15% decrease in case of Poland, Hungary, and Slovakia.

Keywords: value-added; automotive industry; Global Value Chains; transport and storage
JEL classification: F13, F42

Received: July 5, 2021; Revised: October 27, 2021; Accepted: December 10, 2021; Prepublished online: March 7, 2022; Published: September 19, 2022  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Minárik, M., Zábojník, S., & Pásztorová, J. (2022). Sources of Value-Added in V4 automotive GVCs: The Case of Transport and Storage Services and Firm Level Technology Absorption. Central European Business Review, 11(4), 1-24. doi: 10.18267/j.cebr.301
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Bair, J. (2005). Global capitalism and commodity chains: Looking back, going forward. Competition & Change, 9(2), 153-180. https://doi.org/10.1179/102452905X45382 Go to original source...
    2. Baldwin, R., Forslid, R., & Ito, T. (2015). Unveiling the evolving sources of value added in exports. IDE-JETRO, Joint Research Program Series, No. 161. https://www.ide.go.jp/library/English/Publish/Reports/Jrp/pdf/161.pdf.
    3. Biesebroeck, J., & Sturgeon, T. (2011). Global value chains in the automotive industry: An enhanced role for developing countries? International Journal of Technological Learning, Innovation and Development, 4(1/2/3), 181-205. https://doi.org/10.1504/IJTLID.2011.041904 Go to original source...
    4. Börjesson, M., & Eliasson, J. (2019). Should values of time be differentiated? Transport Reviews, 39(3), 357-375. https://doi.org/10.1080/01441647.2018.1480543 Go to original source...
    5. Calabrese, G.G. (2018). Global value chain in the automotive industry: Challenges and new trends. EAD 5977 - New trends in products, processes, technologies and transitions in automotive industry. IRCrES, FEA, USP. https://edisciplinas.usp.br/pluginfile.php/4325260/mod_folder/content/0/Calabrese%20-%20Automotive%20GVC.pdf.
    6. Cattaneo, O., Gereffi, G., & Staritz, C. (2010). Global value chains in a postcrisis world: A development perspective. Worldbank.org. https://openknowledge.worldbank.org/handle/10986/2509. Go to original source...
    7. Dębkowska, K. et al. (2019). The automotive industry in the Visegrad Group countries. Polish Economic Institute. https://pie.net.pl/wp-content/uploads/2019/08/PIE-Raport_Automotive.pdf.
    8. Dollar, D., Khan, B., & Pei, J. (2019). Should high domestic value added in exports be an objective of policy? In WTO, Global Value Chain Development Report 2019: Technological Innovation, Supply Chain Trade, and Workers in a Globalised World, (141-153). https://www.wto.org/english/res_e/booksp_e/gvc_dev_report_2019_e_ch7.pdf. Go to original source...
    9. Faezeh, R., Ignatenko, A., & Mircheva, B. (2019). Global value chains: What are the benefits and why do countries participate? International Monetary Fund [Working paper no. 19/18]. https://www.imf.org/en/Publications/WP/Issues/2019/01/18/Global-Value-Chains-What-are-the-Benefits-and-Why-Do-Countries-Participate-46505.
    10. Fernandez-Stark, K., Bamber, P., & Gereffi, G. (2014). Global value chains in Latin America: A development perspective for upgrading. In R. A. Hermández, J. M. Martinéz-Piva & N. Mulder (Eds.), Global value chains and world trade: Prospects and challenges for Latin America, (79-106). ECLAC. Go to original source...
    11. Folfas, P. (2017). Poland in international production networks of automotive industry. Annuals of the Administration and Law, 17(2), 161-172. https://www.humanitas.edu.pl/resources/upload/dokumenty/Wydawnictwo/Roczniki%20AiP%20-%20pliki/Podzielone/Roczniki%20AiP%202017%20z2/RAiP_2_2017-161-172.pdf
    12. Folfas, P., & Udvari, B. (2019). Chemical industry and value-added trade - A comparative study on Hungary and Poland. Acta Oeconomica, 69(1), 81-99. https://doi.org/10.1556/032.2019.69.1.5 Go to original source...
    13. Gereffi, G. (1994). The organisation of buyer-driven global commodity chains: How US retailers shape overseas production networks. In G. Gereffi & M. Korzeniewicz (Eds.), Commodity chains and global capitalism, (95-122). Praeger.
    14. Gerocs, T., & Pinkasz, A. (2019). Relocation, standardisation and vertical specialisation: ore-periphery relations in the European automotive value chain. Society and Economy, 41(2), 171‒192. https://doi.org/10.1556/204.2019.001 Go to original source...
    15. Goldberg, P. K., Amit Khandelwal, A., Pavcnik, N., & Topalova, P. (2010). Imported intermediate inputs and domestic product growth: Evidence from India. The Quarterly Journal of Economics, 125(4), 1727-1767. https://doi.org/10.1162/qjec.2010.125.4.1727 Go to original source...
    16. Grossman, G. M., & Rossi-Hansberg, E. (2008). Trading tasks: A simple theory of offshoring. American Economic Review, 98(5), 1978-1997. https://doi.org/ 10.1257/aer.98.5.1978 Go to original source...
    17. Hudson, R. (2004). Conceptualising economies and their geographies: Spaces, flows and circuits. Progress in Human Geography, 28(4), 447-471. https://doi.org/10.1191/0309132504ph497oa Go to original source...
    18. Humphrey, J., & Schmitz, H. (2002). How does insertion in global value chains affect upgrading industrial clusters? Regional Studies, 36(9), 1017-1027. https://doi.org/10.1080/0034340022000022198 Go to original source...
    19. Koopman, R., Wang, Z., & Wei, S. J. (2014). Tracing value-added and double counting in gross exports. American Economic Review, 104(2), 459-494. https://doi.org/10,1257 / aer.104.2.459 Go to original source...
    20. Kowalski, P., Gonzalez, J. L., Ragoussis, A., & Ugarte, C. (2015). Participation of developing countries in global value chains. OECD Trade Policy Papers, No.179. https://doi.org/10.1787/5js33lfw0xxn-en Go to original source...
    21. Krugman, P. et al. (1991). Geography and trade. MIT Press.
    22. Lamy, P. (2012, April 17). Trade improves the lives of people. Wto.org. https://www.wto.org/english/news_e/sppl_e/sppl224_e.htm
    23. Lorentzen, J., Muller, L., Manamela, A., & Gastrow, M. (2011). Smart specialisation and global competitiveness: Multinational enterprises and location-specific assets in Cape Town. African Journal of Business Management, 5(12), 4782-4791.
    24. Luptáčik, M., Habrman, M., Lábaj, M., & Rehák, Š. (2013). The importance of automotive industry for the Slovak economy: Empirical results [Final report]. University of Economics in Bratislava. https://www.zapsr.sk/wp-content/uploads/2013/12/Final-Report-Automotive-Industry.pdf
    25. OECD. (2013). Interconnected Economies: Benefiting From Global Value Chains. OECD, 29-30 May 2013. https://www.oecd.org/mcm/C-MIN(2013)15-ENG.pdf Go to original source...
    26. OECD. (2015). Trade in Value Added (TiVA): October 2015: Trade in Value Added (TiVA): Core Indicators. OECD.Stat. https://stats.oecd.org/Index.aspx?QueryId=66268
    27. OECD. (2019). Guide to OECD's trade in value added (TiVA) indicators, 2018 edition. OECD, Directorate for Science, Technology and Innovation. https://www.oecd.org/sti/ind/tiva/TiVA2018_Indicators_Guide.pdf Go to original source...
    28. OECD. (2021). OECD.Stat. https://stats.oecd.org/#.
    29. Pavlínek, P. (2018). Global production networks, foreign direct investment, and supplier linkages in the integrated peripheries of the automotive industry. Economic Geography, 94(2), 141-165. https://doi.org/10.1080/00130095.2017.1393313 Go to original source...
    30. Porter, M. E. (1985). The competitive advantage: creating and sustaining superior performance. Free Press.
    31. Puskarova, P. (2015). Assessing the magnitude of globalisation-induced technology flows in expanded EU-sample: a multi-channel approach. Procedia Economics and Finance, 20, 544-552. https://doi.org/10.1016/S2212-5671(15)00107-0 Go to original source...
    32. Ruzekova, V., Kittova, Z., & Steinhauser, D. (2020). Export Performance as a Measurement of Competitiveness. Journal of Competitiveness, 12(1), 145-160. https://doi.org/10.7441/joc.2020.01.09 Go to original source...
    33. Shih, S. (1992). Empowering technology-making your life easier. Acer´s Report, Acer´s, New Taipei.
    34. Timmer, M. P., Erumban, A. A., Los, B., Stehrer, R., & de Vries, G. J. (2014). Slicing up global value chains. Journal of Economic Perspectives, 28(2), 99-118. https://doi.org/10.1257/jep.28.2.99 Go to original source...
    35. WEF. (2012). The Global Competitiveness Report 2012-20013. http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf.
    36. Zábojník, S., Čiderová, D., & Krajčík, D. (2020). Competitiveness in international business. Wolters Kluwer.

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content