TY - BOOK ID - 133701198 TI - Industrial Competitiveness of the Auto Parts Industries in Four Large Asian Countries : The Role of Government Policy in A Challenging International Environment AU - Doner, Richard F. AU - Noble, Gregory W. AU - Ravenhill, John PY - 2007 PB - Washington, D.C., The World Bank, DB - UniCat KW - Auto Industry KW - Auto Production KW - Automobile KW - Automobile Industry KW - Cars KW - Costs KW - E-Business KW - Economic Theory and Research KW - Economies of Scale KW - Emerging Markets KW - Industry KW - Investments KW - Labor Policies KW - Macroeconomics and Economic Growth KW - Markets and Market Access KW - Microfinance KW - Motor Vehicle KW - Motor Vehicle Exports KW - Motor Vehicle Production KW - Motor Vehicles KW - Policies KW - Private Sector Development KW - Safety KW - Small Scale Enterprises KW - Social Protections and Labor KW - Technology Industry KW - Tires KW - Transport KW - Transport Economics, Policy and Planning KW - Transportation KW - Trip KW - Trucks KW - Vehicle KW - Vehicles KW - Water and Industry KW - Water Resources UR - https://www.unicat.be/uniCat?func=search&query=sysid:133701198 AB - Rationalization and stabilization following the Asian financial crisis of the late 1990s combined with the expansion and liberalization of regional and global trade to create significant parts industries in China, Indonesia, and the Republic of Korea. Conventional policies of stabilization and liberalization, however, cannot fully explain growth patterns. Japan and Korea grew into major players before liberalizing trade and investment, while even after extensive liberalization Indonesia has yet to move from extensive to intensive growth. These anomalies suggest that to explain success in the auto parts industry we need to move beyond liberalization to look at policies and institutions promoting economies of scale, skill formation, quality upgrading, supplier-linkage cooperation, and innovation. In Japan, the regional and global leader, innovative assemblers led industrial development and supported key suppliers, but the government also supported diffusion of quality control techniques and new technology to small and medium enterprises, and encouraged stable employment among core employees. Korea remains weaker on both small and medium enterprise and employment fronts, but government-encouraged consolidation around a small number of business groups, an extended period of protection, and support for export promotion led to economies of scale. Liberalization of foreign investment after the financial crisis helped ameliorate the excessive statism of earlier policies and strengthened the parts industry. In China, liberalization for WTO entry, rapid expansion in demand, and strong support by local governments encouraged a wave of foreign investment in both assembly and parts. In contrast, institutional weaknesses continue to constrain development opportunities in Indonesia. ER -