2nd ICAI 2022

International Conference on Automotive Industry 2022

Mladá Boleslav, Czech Republic

Figure 2: The expenditure structures of the automotive industries

Source: own calculation and elaboration by UIBE The expenditure structure of the automotive industries also profoundly differ. While in 2000 70% of the production was exported in Hungary, the Czech structure was more even: a bit more than 50% was exported, while the other half was domestically sold either as a final or a semi-final product. It is also different that the Czech automotive industry exported mainly final products, the Hungarian production system supplied mainly components to foreign partners. These structures partly melted: Czechia experienced a greater shift by drastically shrinking domestic final expenditure and rising ratio of semi-final goods export. In Hungary there is also a drastic fall in the local production, while the final product export was extended with dropping local intermediate production. When comparing the participation ratios and production lengths as well as positions of the two countries, Hungary is more involved in the global networks, mainly by forward links, while the Czech automotive industry connections got more intensive both backward and forward. Though we found that the Czech industry is much more domestically oriented than Hungary, both countries have a forward participation dominance. Since participation is measured by the imported (backward) and the domestic (forward) value added contents of global export, this fact again draws the attention to the real ownership structure of the domestic production (discussed later). In terms of the complexity structure of the links, simple value chain relations are relatively high, mainly in Czechia, which shows a more concentrated structure in space. Complex value chains are in both directions higher in Hungary, though the forward complex participation dominates the production process. While the Czech automotive industry had strong backward simple relations, later the complexity of its global value chain structure increased. In international comparison the Hungarian participation appears to be even more intensive, while Czechia takes place in the middle of the global range.

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