Publications
WP-EC 2013-05
International Automotive Production Networks: How the web comes together
Blázquez, L. and González, B.
Year of publication: 2013
Keywords: World Automotive Trade Networks, New Economic Geography, Social Network Analysis, Parts and Components.
JEL Classification: F10, F14, F15
Abstract
This paper aims to contribute to the literature on New Economic Geography by providing empirical evidence for the connections between new trade theory and the spatial distribution of economic activities. To do this, we apply Social Network Analysis specifically to the World Automotive Trade Network. We explore the structural features of the auto network for the years 1996 and 2009 using data on trade flows for 172 countries. Our findings suggest that the auto network has become denser, more extensive and more integrated over time, depicting a center-periphery structure in which regional clusters play a prominent role. In this configuration, strong agglomeration forces generated by companies’ desire for large and rich market access with minimum transportation costs are balanced by the search for new high-potential markets.