Home bias and market power: Evidence from the Chinese automobile industry

Author(s):  
Mian Dai ◽  
Qiang Gong ◽  
Shiyu Tan
2021 ◽  
Vol 69 (1) ◽  
pp. 169-213
Author(s):  
Caixia Shen ◽  
Yanfei Wang ◽  
Junji Xiao ◽  
Xiaolan Zhou

2014 ◽  
Vol 101 (1) ◽  
pp. 663-683 ◽  
Author(s):  
Yuandi Wang ◽  
Jian Li ◽  
Lutao Ning ◽  
Deming Zeng ◽  
Xin Gu

2021 ◽  
pp. 001946622110635
Author(s):  
Shilpi Tyagi ◽  
Varun Mahajan

This study tends to examine the firm-level profitability determinants of Indian automobile and ancillary industry which is recognised for its global competitiveness. The study uses recent dataset to investigate the firm-level profitability determinants in the Indian automobile and ancillary industry and records the effect of shifts in profitability due to change in economic environment. This study intends at using real financial balanced panel data for a period 1999–2019 and applies the two-step system generalised method of moments regression model with robust standard errors. The study has found that lagged profitability, marketing and advertising intensity, firm’s market power and operational efficiency have exercised positive impact on firm-level profitability. Negative and statistically significant impact of raw material import intensity and export intensity highlights the need of planning and implementation of appropriate investment strategies. The findings of this study suggest that firms should pay more attention to optimise their operating expenditures, marketing and advertisement expenditures and expand their market power as a part of their survival and growth strategy. JEL Code: L25


Author(s):  
Lu Zhang

This chapter carries out an in-depth analysis of the transformation of China's automobile industry and its labor force over the past two decades, with particular attention on how shop-floor, national, and global processes interact in complex ways to produce the specific industrial relations and dynamics of labor unrest in the Chinese automobile industry. It argues that the massive foreign investment in China's auto sector through joint ventures and the increased scale and concentration of automobile production have created and strengthened a new generation of autoworkers with growing workplace bargaining power and grievances. However, the acute contradictory pressures of simultaneously pursuing profitability and maintaining legitimacy with labor have driven large state-owned automakers and Sino-foreign joint ventures to follow a policy of labor force dualism, drawing boundaries between formal and temporary workers. While formal workers enjoy high wages, generous benefits, and relatively secure employment, temporary workers suffer comparatively low wages, unsecure employment, and heavier and dirtier job assignments. Temporary and other low-wage autoworkers have also become the main source of militancy in the auto industry.


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