We would like to inform you, that the article of our research fellow Lucia Mýtna Kureková, "The automotive industry in central Europe: A success?", is today’s featured article for the IZA World of Labor!

The automotive industry has brought economic growth, but a developmental model based on foreign capital is reaching its limits.

Central Europe has experienced one of the most impressive growth and convergence stories of recent times. In particular, this has been achieved on the back of foreign-owned, capital-intensive manufacturing production in the automotive sector. With large domestic supplier networks and high skill intensity, the presence of complex industry yields many economic benefits. However, this developmental path is now reaching its limits with the exhaustion of the available skilled workforce, limited investments in upgrading and research, and persistent regional inequalities.

Feel free to access the whole article here.