Selected Issues Papers

Structural Transitions to Electric Vehicle Production: Czech Republic

Author/Editor:

Stephen Ayerst ; Neree C.G.M. Noumon

Publication Date:

February 28, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Sustaining the impressive convergence gains allowed by the Czech automotive sector has become challenging due to its comparatively lower value added, lower investments in research and development, and lower skills in the labor market. Using a structural model of global value chains, the paper examines policies to smooth the transition to the production of electric vehicles in Czechia. The analysis explores the impacts of increasing labor productivity, boosting production capabilities, and moving up the global value chain. These policies were found to have a relatively lower impact when they shift specialization towards lower value-added stages of production.

Series:

Selected Issues Paper No. 2023/013

Subject:

Employment Global value chains Globalization International organization Labor Labor productivity Monetary policy Production Skilled labor

Frequency:

Regular