The study is aimed to examine the impact of economic, social and environmental factors on the competitiveness of automotive industry. Competitiveness of industry is measured by the Revealed Comparative Advantage (RCA) Index. Fixed effect model is estimated by using the data of 14 Asian countries for the period ranging from 1991 to 2012. Results show that competitiveness of automotive industry is positively related to economic performance, human capital development, urbanization and tariff rate while negatively affected by lending rate and carbon emission both in developed and developing nations of Asia. Findings of the study suggest that external factors should be given due consideration particularly lending rate, human capital development and tariff to improve the competitiveness of automotive industry. Automotive policies in developing countries should improve their human capital and encourage foreign investors with adequate protection to local industry.
Published in | International Journal of Economic Behavior and Organization (Volume 3, Issue 1) |
DOI | 10.11648/j.ijebo.20150301.12 |
Page(s) | 10-17 |
Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
Copyright |
Copyright © The Author(s), 2015. Published by Science Publishing Group |
Competitiveness, Automotive Industry, Economic Growth, Education
[1] | Attanasio, O. P., Koujianou Goldberg, P., &Kyriazidou, E. (2008). Credit Constraints in the Market for Consumer Durables: Evidence from Micro Data on Car Loans. International Economic Review, 49(2), 401-436. |
[2] | Balassa, B. (1965). Trade Liberalisation and “Revealed” Comparative Advantage. The Manchester School, 33(2), 99-123. |
[3] | Baltagi, Badi. (2008). Econometric Analysis of Panel Data: Wiley. com. |
[4] | Bekmez, S., &Komut, M. (2006). Competitiveness of Turkish Automotive Industry: A Comparison with European Union Countries. Human and Economic Resources Proceedings Book, 180. |
[5] | Breusch, T. S., & Pagan, A. R. (1980). The Lagrange Multiplier test and its Applications to Model Specification in Econometrics. The Review of Economic Studies, 47(1), 239-253. |
[6] | Buckley, P. J., Clegg, J., Zheng, P., Siler, P. A., &Giorgioni, G. (2007). The Impact of Foreign Direct Investment on the Productivity of China’s Automotive Iindustry. Management International Review, 47(5), 707-724. |
[7] | Chen, B., Abeles, E., & Burke, A. (2004.). Effect of Emissions Regulation on Vehicle Attributes, Cost, and Price. |
[8] | Czuchry, A., Yasin, M., &Khuzhakhmetov, D. L. (2009). Enhancing Organizational Effectiveness through the Implementation of Supplier Parks: The Case of the Automotive Industry. Journal of International Business Research, 8(1), 45-61. |
[9] | Fagerberg, J., &Verspagen, B. (2002). Technology-gaps, Innovation-diffusion and Transformation: An Evolutionary Interpretation. Research Policy, 31(8), 1291-1304. |
[10] | Fai, F. M., & Morgan, E. J. (2007). Innovation, Competition and Regulatory Change: Assessing Interrelationships at the Industry Level. Management International Review, 47(5), 767-785. |
[11] | Gallagher, K. S. (2003). Foreign Technology in China’s Automobile Industry: Implications for Energy, Economic Development, and Environment. China Environment Series, 1(6), 1-18. |
[12] | Hunya, G. (2000). International Competitiveness Impacts of FDI in CEECs (No. 268). The Vienna Institute for International Economic Studies. |
[13] | Jaffe, A. B., & Palmer, K. (1997). Environmental Regulation and Innovation: A Panel Data Study. Review of Economics and Statistics, 79(4), 610-619. |
[14] | Judson, R. A., & Owen, A. L. (1999). Estimating Dynamic Panel Data Models: A Guide for Macroeconomists. Economics letters, 65(1), 9-15. |
[15] | Kumar, R., &Chadee, D. (2002). Competitiveness of Asian Firms: An Analytical Framework (No. 4). ERD Working Paper Series, (37). |
[16] | Le, Q. P. (2010). Evaluating Vietnam's Changing Comparative Advantage Patterns. ASEAN Economic Bulletin, 27(2), 221-230. |
[17] | Lee, J. W. (1993). International Trade, Distortions, and Long-Run Economic Growth. Staff Papers-International Monetary Fund, 299-328. |
[18] | Martin, R. L. (2003). A Study on the Factors of Regional Competitiveness. Report for the European Commission Directorate-General Regional Policy. Cambridge University. |
[19] | Muhammad, F., Hussin, M. Y. M., &AbRazak, A. (2010). Automobile Sales and Macroeconomic Variables: A Pooled Mean Group Analysis for Asean Countries Journal of Business and Management, 2(1), 15-21. |
[20] | Narayanan, B. G. (2010). Determinants of Competitiveness of the Indian Auto Industry. ICRIER Working Paper No. 201. |
[21] | Porter, M. E., & Van der Linde, C. (1995). Green and Competitive: Ending the Stalemate. Harvard business review, 73(5), 120-134. |
[22] | Smith Jr, D. F., & Florida, R. (1994). Agglomeration and Industrial Location: An Econometric Analysis of Japanese-Affiliated Manufacturing Establishments in Automotive-Related Industries. Journal of Urban Economics, 36(1), 23-41. |
[23] | Triebswetter, U., &Wackerbauer, J. (2008). Integrated Environmental Product Innovation and Impacts on Company Competitiveness: A Case Study of the Automotive Industry In the Region of Munich. European Environment, 18(1), 30-44. |
[24] | Wad, P. and V. C. Govindaraju (2011). Automotive Industry in Malaysia: An Assessment of its Development. International Journal of Automotive Technology and Management, 11(2), 152-171. |
[25] | Winston, C. (1987).Blind intersection: Policy and the Automobile Industry. Retrieved from http://www.osti.gov/scitech/servlets/purl/5617711 |
[26] | Wooldridge, Jeffrey M. (2002). Econometric Analysis of Cross-section and Panel Data: The MIT Press. Cambridge, Massachusetts, London, England. |
APA Style
Abdul Hannan, Faheem Haider, Nisar Ahmad, Tahira Ishaq. (2015). Impact of Economic, Social and Environmental Variables on Competitiveness of Automotive Industry: Evidence from Panel Data. International Journal of Economic Behavior and Organization, 3(1), 10-17. https://doi.org/10.11648/j.ijebo.20150301.12
ACS Style
Abdul Hannan; Faheem Haider; Nisar Ahmad; Tahira Ishaq. Impact of Economic, Social and Environmental Variables on Competitiveness of Automotive Industry: Evidence from Panel Data. Int. J. Econ. Behav. Organ. 2015, 3(1), 10-17. doi: 10.11648/j.ijebo.20150301.12
AMA Style
Abdul Hannan, Faheem Haider, Nisar Ahmad, Tahira Ishaq. Impact of Economic, Social and Environmental Variables on Competitiveness of Automotive Industry: Evidence from Panel Data. Int J Econ Behav Organ. 2015;3(1):10-17. doi: 10.11648/j.ijebo.20150301.12
@article{10.11648/j.ijebo.20150301.12, author = {Abdul Hannan and Faheem Haider and Nisar Ahmad and Tahira Ishaq}, title = {Impact of Economic, Social and Environmental Variables on Competitiveness of Automotive Industry: Evidence from Panel Data}, journal = {International Journal of Economic Behavior and Organization}, volume = {3}, number = {1}, pages = {10-17}, doi = {10.11648/j.ijebo.20150301.12}, url = {https://doi.org/10.11648/j.ijebo.20150301.12}, eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20150301.12}, abstract = {The study is aimed to examine the impact of economic, social and environmental factors on the competitiveness of automotive industry. Competitiveness of industry is measured by the Revealed Comparative Advantage (RCA) Index. Fixed effect model is estimated by using the data of 14 Asian countries for the period ranging from 1991 to 2012. Results show that competitiveness of automotive industry is positively related to economic performance, human capital development, urbanization and tariff rate while negatively affected by lending rate and carbon emission both in developed and developing nations of Asia. Findings of the study suggest that external factors should be given due consideration particularly lending rate, human capital development and tariff to improve the competitiveness of automotive industry. Automotive policies in developing countries should improve their human capital and encourage foreign investors with adequate protection to local industry.}, year = {2015} }
TY - JOUR T1 - Impact of Economic, Social and Environmental Variables on Competitiveness of Automotive Industry: Evidence from Panel Data AU - Abdul Hannan AU - Faheem Haider AU - Nisar Ahmad AU - Tahira Ishaq Y1 - 2015/03/18 PY - 2015 N1 - https://doi.org/10.11648/j.ijebo.20150301.12 DO - 10.11648/j.ijebo.20150301.12 T2 - International Journal of Economic Behavior and Organization JF - International Journal of Economic Behavior and Organization JO - International Journal of Economic Behavior and Organization SP - 10 EP - 17 PB - Science Publishing Group SN - 2328-7616 UR - https://doi.org/10.11648/j.ijebo.20150301.12 AB - The study is aimed to examine the impact of economic, social and environmental factors on the competitiveness of automotive industry. Competitiveness of industry is measured by the Revealed Comparative Advantage (RCA) Index. Fixed effect model is estimated by using the data of 14 Asian countries for the period ranging from 1991 to 2012. Results show that competitiveness of automotive industry is positively related to economic performance, human capital development, urbanization and tariff rate while negatively affected by lending rate and carbon emission both in developed and developing nations of Asia. Findings of the study suggest that external factors should be given due consideration particularly lending rate, human capital development and tariff to improve the competitiveness of automotive industry. Automotive policies in developing countries should improve their human capital and encourage foreign investors with adequate protection to local industry. VL - 3 IS - 1 ER -