The spread of international manufacturing: evidence from passenger car producers


Steenhuis, Harm-Jan and Bruijn, Erik J. de (2004) The spread of international manufacturing: evidence from passenger car producers. In: Second World Conference on POM and 15th Annual POM Conference, April 30 - May 3, 2004, Cancun, Mexico.

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Abstract:There is a widely held belief that manufacturing activities are being relocated from
industrially advanced nations toward industrially developing nations. In many
industrially advanced countries this shift is perceived as a threat for employment levels
and it raises the issue of whether industrially advanced nations are losing their industrial
base. In this study we examine the international shift of production. Production trends in
the passenger car manufacturing industry were analyzed for the past five years. The data
of top-10 passenger car producing companies, grouped by region of origin show that
there is no conclusive evidence that passenger car manufacturers are shifting their
international production towards low labor cost countries. Sales evidence shows that the
location of production might be tied with the location of sales. The implication of this is
that least for this important sector, that industrially advanced nations are not losing their
manufacturers as long as there is a national demand for their products
Item Type:Conference or Workshop Item
Faculty of Behavioural, Management and Social sciences (BMS)
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