Sources of Value-Added in V4 automotive GVCs: The Case of Transport and Storage Services and Firm Level Technology Absorption

Abstract

Within V4 automotive Global Value Chains (GVCs), technologies absorbed by the corporate sector represent a significant impact on the level of value-added created within the economy. Sectoral and geographic targeting of our research is determined by the export of motor vehicles, trailers, and semi-trailers produced in the V4 countries. The article's main objective was to investigate the role of services provided by V4 countries within GVCs with an emphasis on transport and storage. The authors used the method of linear regression analysis to answer two central research questions. Is there a synergic or spillover effect within the automotive clusters of the V4 countries in creating value-added originating in the logistic services? What role absorption of technology at the firm level in EU27 countries (the most important trading partners of the V4 countries) plays in creating value-added in the V4 automotive sector? Authors found differentiated results within V4 countries, confirming the hypothesis related to technology absorption. Implications for Central European audience: Despite high V4 export performance, the research suggests how to increase the value-added through higher involvement within GVCs (particularly the automotive industry). The paper demonstrates a positive impact of importing transport services from the EU countries to some V4 countries (Slovakia, Czechia, and Poland) and its value-added content in gross exports. For any V4 country, an increase in the quality of the business environment of EU trade partners (measured as the corporate level of technology absorption) results in a lower value-added creation, quite significantly, with lower effect in the case of Czechia, but more than 15% decrease in case of Poland, Hungary, and Slovakia.

Industry 4.0 Wireless Networks and Cyber-Physical Smart Manufacturing Systems as Accelerators of Value-Added Growth in Slovak Exports

“…Faster communication is made possible by digitization, which reduces wasteful use of paper and other consumables. As a result, there are fewer product errors, more control, and a more seamless production process [4].…”

“…Thanks to the development of data-driven technologies and cyber-physical process-monitoring systems, the value chain is being virtualized, thus reducing barriers to entry for an increasing number of marginal service providers through outsourcing or offshoring [14]. According to Minarik et al [4], the history of globalization shows that two dimensions of its development are of major importance: in particular, significant changes in the technological world of production, as well as the diversity of social and economic forms. The first part of the research is related to [15,16] that describes the four industrial revolutions and their significant impact on globalization.…”

“…Humans and machines will be able to send information in real-time through interconnected application networks. This will allow them to synchronize quickly and efficiently [4]. This type of equipment capability will represent high potential for industry, whether in the processing, architecture, healthcare, infrastructure, or transport sectors.…”

“…There are currently several trends affecting the global industry, whether it is the COVID-19 pandemic [2], the protectionism of several countries, the growing stability of developing states, the growth and decline of commercial services, or the overall dynamics of the world economy [3]. In any case, the positive effects outweigh the negative ones, and ultimately, the existence of international trade, global value chains, and the implementation of the latest trends, such as Industry 4.0, is inextricable [4].…”

Evolvement of Global Value Chain Positions in Central and Eastern European Countries: A New Dimension in Catching Up?

“…This kind of unbundling allows influential countries to keep higher value-added activities within their borders and to cover these products from export, outsource lower valueadded activities or produce the products in another country in the form of FDI (foreign direct investment). Research by Minárik et al (2022) shows a good example of how other activities related to the production of the automotive industry (such as transportation and warehousing activities) can increase the share of value added in an exceptionally low value-added global sector.…”