THE AUTOMOTIVE INDUSTRY IN THE ‘OLD PERIPHERY’ OF THE EUROPEAN UNION: REGIONAL INPUT LINKAGES OF VOLKSWAGEN NAVARRA SA

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Abstract:

ABSTRACT

The intended main output of this paper is a measurement of the dependence of the regional economy of Navarre (Northern Spain) on the Volkswagen plant producing the Polo model. Based on a field survey (qualitative interviews with 33 automotive suppliers) an exercise is developed to estimate the impact of the closure of the VW plant on regional employment. The degree of dependence on the Volkswagen plant found is lower than had been speculated: it is calculated that 7,222 direct and indirect jobs would be lost if the plant relocated. This study also casts doubt on the reliability of input-output tables in estimations such as the one proposed here. Finally, a comparison with other automotive assembly plants in Spain could be construed as evidence of convergence in the organisational models of the assembly plants on the ‘old periphery’ of Europe.

Keywords: Automotive industry; Navarre-Spain; productive organisation; qualitative interviews; regional economic dependence

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/j.1467-9663.2006.00344.x

Affiliations: Departamento de Economía, Universidad Pública de Navarra, Campus de Arrosadía, 31006 Pamplona, Spain

Publication date: September 1, 2006

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