Intra-regional trade in the automotive industry of east-central Europe

Abstract

The paper examines the intra-regional trade of the automotive industry in East-Central Europe as the prioritized target of foreign direct investment and a production site of growing importance in the sector. Our main assumption is that cross-border agglomeration tendencies (reflected in intra-regional trade relations), with the upgrading of the region, play an increasingly important role. After a review of the relevant literature, the paper analyses and explains how the significance and the structure of the connections within the region have recently changed. The empirical survey focuses on the first decade of the 21st century, with the East-Central European countries (Czechia, Hungary, Poland, Romania, Slovakia and Slovenia) characterized by the considerable presence of the automotive industry.