Changing Patterns of Inter- and Intra-Regional Division of Labour : Central Europe’s Long and Winding Road

Central Europe's unique history together with its geographical location provide an excellent opportunity to analyse the dynamics of inter- and intra-regional division of labour, the role and scope of global and regional patterns, national policies and firms' strategies. Central European countries have long-established, but somewhat different automotive traditions, shaped by the three distinct socio-economic systems occurring in the space of 90 years. These traditions continue to shape the auto industry even today.The paper first describes the development of the auto industry in the period up to the collapse of the Soviet Union. This is followed by an analysis of major current developments, in particular foreign direct investment (FDI) projects, as well as production and sales prospects.Then Central Europe's role in the European division of labour is discussed, and finally the impacts of re-integration and FDI on the host economies and domestic suppliers are considered