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The Asian Automotive Industry: Assessing the Roles of State and Market in the Age of Global Competition

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In the 1970s, automotive industries in developing economies were rebuked for their failure to set in motion the technological learning and industrial externalities that justified state promotion. However, in the 1990s, a number of Asian automotive industries throve with the rapid growth of their host economies. This paper assesses the current state and prospects of automotive industries in selected Asian countries with state-sponsored development programs—South Korea, Taiwan, China and India—and the ASEAN economies—Thailand, Indonesia, Malaysia, the Philippines and Vietnam. To date, Korea is the only developing economy in Asia with an indigenous auto-manufacturing base capable of competing in the international market. Given developments in the world industry, the catch-up task for other countries in the region will be more difficult.
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Document Type: Research Article

Affiliations: University of the Philippines–Diliman

Publication date: May 1, 1998

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