A linearized version of Pinkse and Slade's (1998) spatial probit estimator is used to account for the tendency of auto supplier plants to cluster together. By reducing estimation to two steps - standard probit or logit followed by two-stage least squares - linearization produces a model that can...

Plant locations in the U.S. auto industry have been moving southward for some time now. This paper utilizes a comprehensive dataset of the U.S. auto industry and focuses on plant location decisions of auto supplier plants that were opened less than 15 years ago in the U.S. We find that...

We explore the determinants and effects of trust relationships between upstream suppliers and downstream producers. Using unique survey data on individual supplier-buyer relationships in the German automotive industry, we show, by means of different measures of supplier-buyer trust, that higher...

Motor vehicle and motor vehicle parts production plants tend to exhibit a strong degree of agglomeration. This paper estimates a spatial model utilizing detailed plant-level data that is pooled across seven countries in Europe. The paper makes several contributions. First, we assemble a set of...

The restrictive measures that have been imposed from March 2020 on business activities in several countries to reduce the spread of the COVID-19 pandemic can be interpreted as shocks to global supply chains. We propose some agent-based models to evaluate the economic effects of different...

We examine the use of partial equity stakes and volume-based dependence balancing in Japanese automotive supply relationships. Building on Williamson's (1983) hostage model, we argue that the robustness of different types of hostage arrangement depends on the value, durability, and observability...

We explore the determinants and effects of trust relationships between upstream suppliers and downstream producers. Using unique survey data on individual supplier-buyer relationships in the German automotive industry, we show, by means of different measures of supplier-buyer trust, that higher...

We investigate the effects of 2015 Volkswagen diesel emissions scandal in the Taiwanese new car market. Using a difference-in-differences empirical strategy and administrative data on new car registrations, we find that quarterly sales of Volkswagen fell by more than 20% in self-use market. But...

In this paper we examine the main transformations that are affecting European automotive industry and which challenges, in particular due to the transition to new forms of propulsion, the industry is going to face. The automotive industry is central to the European economy and the nature of the...

The automotive industry is undergoing a profound transformation in its transition to production of electric vehicles. This paper seeks to examine the main transformations taking place in global value chains in the automotive industry as a result of this transition. The analysis follows a...