2nd ICAI 2022

International Conference on Automotive Industry 2022

Mladá Boleslav, Czech Republic

Figure 4: The change and the structure of the GVC lengths

Note: PLf = forward length; PLb = backword length; D= domestic part; RT = range of the traditional trade of final products; GVC = length of the simple and complex global value chain parts. Source: own elaboration by UIBE The international input-output tables provide the possibility to trace all the direct country-industry inputs and expenditures. Table 1 reflects the contributing links in the sequence of the latest year values. The dark grey area indicates the first third most important links, the light grey bar contains the first 50% of the cumulated values. The tables reflect at first sight that the Czech value chain is more concentrated than the Hungarian links. In addition, the majority of the backword connections are local in Czechia while the Hungarian links mostly range to Germany. In accordance with the importance of imports (see Figure 1) the table describes the detailed structure of the imports both in terms of countries and industries. As far as the contributing industries are concerned, the technological relations are similar in both countries and quite concentrated to 4-7 main industries including the input of the motor vehicle industry itself. However, while the local contributions contain high value-added industries and services – similar to the German supply – in Czechia, the Hungarian local industries contribute much less to the process; in this case the German, Czech and Austrian value-added take the majority. Regarding the motor vehicle industry itself the local contribution in Czechia is around 20%, while it is 1.1% of the intermediate consumption (excluding value added!) in Hungary. The changes of contributing industries and countries in time also deserve attention. In the case of Czechia, Poland, Slovakia and Korea denote a remarkable relative increasing role, all as a supplier in the motor vehicle industry. Moreover, it is worth noting that the Czech local links have moved from a lower value-added contribution (manufacture of basic metals, fabricated metal product, rubber and plastic) to higher value-added levels. In Hungary the most remarkable fact is the drastic shift from the local contribution to mainly German and Czech suppliers, and an increase in the participation of Poland, Slovakia, Korea and China. The Japanese role seems to shrink over time; however, the importance of Suzuki questioned these data. The fall back of Hungary appears mainly in the high value-added stages such as automotive industry production and the manufacture of machinery and equipment. It is also a remarkable

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