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The fragmentation of production and the competitiveness of nations in the automotive sector – A network approach

The fragmentation of production and the competitiveness of nations in the automotive sector – A network approach

Smith, Matthew, Gorgoni, Sara and Cronin, Bruce ORCID: 0000-0002-3776-8924 (2016) The fragmentation of production and the competitiveness of nations in the automotive sector – A network approach. In: 5th Annual CIRANO-Sam M. Walton College of Business Workshop on Networks in Trade and Finance, Friday, 30 September - Saturday, 1 October 2016, Fayetteville, Arkansas. (Unpublished)

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Abstract

In recent decades the organisation of production has changed, with production and manufacturing activities no longer taking place in a single location, with lower transportation and communication costs leading to production activities geographically spread out into a global value chain. This reorganisation and fragmentation of the production process has led to increased sources of competition at the international level, with many firms from industrialised nations increasing their level of outsourcing and off-shoring of lower value activities to developing countries. Along with the increase in outsourcing activities, many industrialised nations are also now facing increasing competition from developing countries, who are steadily developing capabilities, in which industrialised nations once held a firm competitive advantage. This paper makes use of network analysis of the international trade network to analyse the competitive level of countries in the automotive industry, and to answer the research question of to what extent is the competitiveness level of a country determined by its position within the international trade network. The application of the temporal network autocorrelation model (TNAM) will be used to answer this question, this is an advanced statistical method that provides a highly flexible framework to model the competitiveness of nations embedded in an international trade network.

Item Type: Conference or Conference Paper (Paper)
Uncontrolled Keywords: Social network analysis; International trade; Automotive sector
Subjects: H Social Sciences > HA Statistics
H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Centre for Business Network Analysis (CBNA)
Faculty of Business > Networks and Urban Systems Centre (NUSC) > Centre for Business Network Analysis (CBNA)
Faculty of Business > Department of International Business & Economics
Last Modified: 03 Jan 2017 15:17
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
URI: http://gala.gre.ac.uk/id/eprint/16133

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