CELSI researchers contributed to a chapter on the uncertain position and dependency of the automotive industry in Slovakia, published by Emerald Publishing.

Slovakia as an Automobile Superpower or Factory Economy?

CELSI senior researcher Monika Martišková and CELSI research fellow Katarína Lukáčová contributed to a chapter on the uncertain position and current dependency of the automotive industry in Slovakia, published by Emerald Publishing.

This chapter is part of the book “Modeling Economic Growth in Contemporary Slovakia,” edited by Michael Augustín (University of Economics in Bratislava, Slovakia, and Slovak Academy of Sciences, Slovakia), Peter Jančovič (University of Economics in Bratislava, Slovakia), and Bruno S. Sergi (Harvard University, USA, and University of Messina, Italy).

The chapter, titled “Slovakia as an Automobile Superpower or Factory Economy?” is based on research conducted from 2022 to 2024 within the BARMETAL project, supported by the European Commission & European Social Fund Plus.

It describes the rapid development of the automotive industry in Slovakia over the last 20 years, highlights the limits of this growth, which is heavily dependent on foreign capital, and explains why the Slovak government’s response further entrenches this dependency.

Abstract:

The automotive industry in Slovakia has undergone rapid development over the last 20 years, largely due to foreign direct investment, which has driven increases in production output, exports, and employment. In this chapter, we highlight the limitations of this growth model, pointing to the industry's production function, which relies heavily on foreign capital. Given the current challenges of digitalization, automation, and car electrification, Slovakia’s position appears uncertain. As a response, the Slovak government and other regional governments are supporting a new wave of foreign direct investment, especially in battery production, and in Slovakia’s case, attracting a fifth car manufacturer. We conclude that this strategy reinforces dependency on foreign capital and know-how rather than fostering domestic industrial upgrading.

Read the chapter here: https://www.emerald.com/insight/content/doi/10.1108/978-1-83549-454-720241015/full/html