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Exploring the drivers behind automotive exports in OECD countries - an empirical analysis

Revised version of working paper sustainability and innovation No. S4/2011
: Jochem, Patrick; Schleich, Joachim

Fulltext urn:nbn:de:0011-n-2052112 (355 KByte PDF)
MD5 Fingerprint: 8ab495e5d5f7906c9d933c6490996a8c
Created on: 27.6.2012

Karlsruhe: Fraunhofer ISI, 2012, 25 pp.
Working Paper Sustainability and Innovation, S3/2012
Report, Electronic Publication
Fraunhofer ISI ()
lead market; international trande; export potential; automotive industry

The conceptual part of this paper ties the recently developed Lead Market concept to the international trade theory literature including neoclassical trade theory, new trade theory, neotechnological approaches and systems of innovation concepts. The empirical part explores the factors driving exports in the automotive sector in eight OECD countries between 1991 and 2008, explicitly accounting for possible Lead Market factors. Econometric results suggest that exports in the automotive sector are positively related to the general strength of a country in terms of exports, to higher GDP per capita and to a lower labour cost share in the automotive sector. However, domestic market size and R&D in the automotive sector do not exhibit statistically significant effects on exports.