Globalization and the German industrial production model

Herrigel, Gary

doi:10.1007/s12651-014-0170-5

Cited by 37 publications

(52 citation statements)

References 22 publications

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“…Some authors sit uneasily in either camp (e.g. Herrigel, 2015), but this bipartition helps us to summarize the debate.…”

Section: Theoretical Perspectives On the German Model: 'Liberalizers'mentioning

confidence: 99%

“…The product quality of German competitors has progressively improved thanks to technological progress and organizational learning (Herrigel et al, 2013). Thus the high-end markets of DPQ memory have become more contestable and this has forced German companies to engage in a constant process of restructuring, which innovates and upgrades while simultaneously cutting costs (Herrigel, 2015).…”

Section: The Liberalizersmentioning

confidence: 99%

“…The use of subcontractors is particularly widespread in Germany because it strengthens the firms' ability to react flexibly and rapidly to changes in demand. At the same time, it allows for cost savings because subcontracting firms are generally not covered by sectoral agreements (Herrigel, 2015).…”

Section: The Liberalizersmentioning

confidence: 99%

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Throwing out the ballast: growth models and the liberalization of German industrial relations

Baccaro

Benassi

2016

Socioecon Rev

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This article proposes a new interpretation of the evolution of German industrial relations focusing on the interaction between macroeconomic dynamics and industrial relations developments and specifically on 'growth models'. It argues that there has been a shift in the German growth model from growth pulled by net exports and consumption simultaneously to almost exclusively export-led growth. In addition, exports of machinery and transportation equipment have become more pricesensitive, implying that wage and price increases now pose a greater threat to growth than in the past. These macroeconomic developments have spurred a set of adjustments in the industrial relations sphere with export-oriented firms seeking cost reductions and liberalizations. Industrial relations changes have in turn contributed to entrench export-led growth by augmenting the systemic importance of the foreign sector and reducing the relevance of domestic demand. The export sector has thrived at the expense of real wage stagnation, particularly (but not exclusively) in labour-intensive service sectors, and pattern bargaining has lost its ability to redistribute across sectors and boost domestic demand. The new German model is much leaner and meaner than in the past. Contrary to recent literature, its erosion and liberalization are not limited to the service periphery but affect the manufacturing core as well.Key words: Germany, industrial relations, institutional change, varieties of capitalism, growth models JEL classification: P16 political economy, E02 institutions and the macroeconomy, J52 collective bargaining

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“…Some authors sit uneasily in either camp (e.g. Herrigel, 2015), but this bipartition helps us to summarize the debate.…”

Section: Theoretical Perspectives On the German Model: 'Liberalizers'mentioning

confidence: 99%

Section: The Liberalizersmentioning

confidence: 99%

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Throwing out the ballast: growth models and the liberalization of German industrial relations

Baccaro

Benassi

2016

Socioecon Rev

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“…This was evident in China throughout the reform period in which the government traded market access for technology transfer (Holweg et al 2009;Liu and Dicken 2006). With the recent expansion of large private consumer markets, foreign firms have radicalized their investment strategies according to the dictum 'produce where you sell' (Herrigel 2015) and now engage in direct partnerships with promising domestic firms that the local authorities support and that possess knowledge of domestic consumer preferences (Yang 2014(Yang , 2015.…”

Section: The Role Of the Domestic Market And (Local) State Policies Fmentioning

confidence: 99%

“…The combination of these factors is what accounts for the peculiar upgrading experience in this sector, rather than merely the resources that a new version of the 'developmental state' is able to provide; in addition, domestic market growth alone would also not explain the success of the Chinese players. As such, the case of the LED industry may indicate a diversion from the market-driven export-led upgrading experiences that reflect a general shift towards markets in the Global South (Cattaneo et al 2010;Gereffi 2014;Herrigel 2015).…”

mentioning

confidence: 99%

A great leap? Domestic market growth and local state support in the upgrading of China's LED lighting industry

Butollo

Brink

2017

Global Networks

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In this article we analyse the conditions for industrial upgrading in the Chinese LED industry, which proactive local state policies and expanding domestic markets have greatly facilitated. State initiatives provoked overinvestment, but eventually led to the emergence of competitive domestic enterprises. Simultaneously, firms benefited from a growing domestic market on which they outcompeted foreign companies in mid‐price segments. The combination of these factors accounts for the peculiarly Chinese upgrading experience. Neither the resources provided by a new version of the ‘developmental state’ nor domestic market growth alone can explain the Chinese players' success. Based on these results, and given that the emerging economies have become the most important markets for certain consumer goods – a development that (local) industrial policies for industrial upgrading can influence – we provide further proof that it is necessary to rethink the export‐led upgrading paradigm in theories of globally dispersed production.

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