The role of low-wage peripheries in the global automotive value chains
The case of Central Eastern Europe.
DOI:
https://doi.org/10.32387/prokla.v48i193.1144Keywords:
low wages, value chains, Central Eastern Europe, dependent market economyAbstract
Which chances does the inclusion into the global value chains of the automotive industry offer for low-wage peripheries? The case of Central Eastern Europe shows a contradictory development. On the one hand, the automotive industry in Central Eastern Europe has experienced a profound modernization of products and technologies. On the other hand, the region remains highly dependent on the combustion engine technology while innovation activities directed to future technologies (e.g., electromobility) are lacking. In addition, the dominance of neoliberal policy recipes in the region has led to a decoupling of economic and social development, to wage stagnation and the lack of investments in skills and education.
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