Sturgeon, Timothy J.Van Biesebroeck, Johannes2012-03-192012-03-192009-09-01https://hdl.handle.net/10986/4251In 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.CC BY 3.0 IGOAGGREGATE DEMANDAGRICULTUREBAILOUTBAILOUTSBANK HOLDINGBANKING SECTORBANKRUPTCIESBANKRUPTCYBIDCOMMODITY PRICESCOMPARATIVE ADVANTAGECONSTRUCTIONCONSUMER PREFERENCESCONSUMERSCREDIT MARKETSDEBTDEBTORDEVELOPING COUNTRIESDIVISION OF LABORDOMESTIC MARKETDRIVERSDURABLEDURABLE GOODSECONOMIC GEOGRAPHYECONOMICSEMERGING MARKETEMERGING MARKET COUNTRIESENVIRONMENTAL BENEFITSEQUIPMENTEQUITY STAKEEXPORTSFEDERAL RESERVEFINANCIAL CRISISFINANCIAL INSTITUTIONSFIXED CAPITALFIXED COSTSFOREIGN DIRECT INVESTMENTFREE TRADEGASGLOBAL TRADEGLOBALIZATIONGOVERNMENT INTERVENTIONGOVERNMENT INTERVENTIONSHIGH LEVELSHOLDINGIMPORT QUOTASINTERNATIONAL BANKINTERNATIONAL TRADEINVENTORIESINVESTMENT BANKSJOB CREATIONLABOR COSTSLABOR MARKETLABOR STATISTICSLABOR UNIONSLAYOFFSLIBERALIZATION OF TRADELIQUIDATIONLOANLOCAL GOVERNMENTSLOCAL MARKETSMANUFACTURING INDUSTRYMARKET DATAMARKET PRICESMARKET SHAREMATURE MARKETSMERGERSMINORITY SHAREHOLDERSMOTIVATIONMULTIPLIER EFFECTSOIL PRICESOLIGOPOLYOPERATIONAL INDEPENDENCEORGANIZATIONAL STRUCTUREORGANIZATIONAL STRUCTURESPENSIONPENSION FUNDPENSIONSPHYSICAL ASSETSPOLICY RESPONSESPOLITICAL INSTITUTIONSPORTFOLIOPOSITIVE EFFECTSPRODUCTIVITYPRODUCTIVITY GROWTHPROTECTIONISMPURCHASINGPURCHASING POWERRECESSIONREGIONAL UNEMPLOYMENTREGISTRATION FEESREGULATORY OVERSIGHTREPAYMENTRIGHT TO WORKSAFETYSALESALESSHAREHOLDERSHAREHOLDERSSKILLED LABORSUBSTITUTESUPPLIERSUPPLIERSSUPPLY CHAINSURPLUSTAKEOVERTARGET MARKETSTARIFF BARRIERSTAXTOTAL SALESTRADE DEFICITTRADINGUNEMPLOYMENTUNEMPLOYMENT RATESVALUE ADDEDWAGESWORKING CAPITALWORLD MARKETWORLD MARKETSWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/1813-9450-5060