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New journal article about determinants of sectoral growth in automotive sector and decline in textile industry in Central Europe by Lucia Kureková


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New journal article about determinants of sectoral growth in automotive sector and decline in textile industry in Central Europe by Lucia Kureková

Published on June 1, 2012 in Journal articles

New journal article about determinants of sectoral growth in automotive sector and decline in textile industry in Central Europe by Lucia Kureková

Success Against All Odds? Determinants of Sectoral Rise and Decline in Central Europe. East European Politics and Societies. DOI: 10.1177/088832­5412440168

 

This article investigates the development over time of the automotive and textile industries post-1989 in four Central European countries in order to identify the key reasons behind sectoral growth or decline. The analysis demonstrates a divergent pattern of sectoral development, one that is in contrast to the perceived initial endowments of the countries and the structural positions of the sectors at the outset of the transition. Comparing the two sectors and individual success stories within them against a broader background of sectoral success and failure allows us to understand and isolate factors that lie behind the high status of the automotive sector by not only regional but also international standards. The article identifies three crucial factors that can be attributed to these outcomes: presence of foreign capital in the sector, active government support, and cooperative strategies among the firms in the sector and among the firms and other institutions in the countries.

 

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