To read this content please select one of the options below:

Slovakia as an Automobile Superpower or Factory Economy?

Monika Martišková ^a

Katarína Lukáčová ^b

^{^a}Central European Labour Studies Institute (CELSI), Slovakia and Charles University, Czechia

^{^b}Scuola Normale Superiore in Pisa, Italy and European Training Foundation, Italy

Modeling Economic Growth in Contemporary Slovakia

ISBN: 978-1-83549-455-4, eISBN: 978-1-83549-454-7

Publication date: 15 November 2024

Abstract

The automotive industry in Slovakia underwent a steep development pathway during the last 20 years, mostly thanks to the inflow of foreign direct investments, resulting in increasing production outputs, exports, and employment. In this chapter, we highlight the limits of this growth, pointing out on production function of the industry heavily based on foreign capital. Under the current challenges of production digitalization, automatization, and car electrification, the position of the country seems uncertain. As a response, the government of Slovakia, but also others in the region, embarked on supporting new wave of foreign direct investments mostly in battery production and in the case of Slovakia also attracting a fifth car manufacturer. We conclude that this strategy fixes the current dependency on foreign capital and know-how rather than allows for upgrading.

Keywords

Acknowledgements

Acknowledgment

This work is based on the research conducted between 2022 and 2024 within BARMETAL project supported by the European Commission & European Social Fund Plus (no. 101052331). This work was also supported by the Czech Science Foundation [Grant Number 23-07819S].

Citation

Martišková, M. and Lukáčová, K. (2024), "Slovakia as an Automobile Superpower or Factory Economy?", Augustín, M., Jančovič, P. and Sergi, B.S. (Ed.) Modeling Economic Growth in Contemporary Slovakia (Entrepreneurship and Global Economic Growth), Emerald Publishing Limited, Leeds, pp. 181-200. https://doi.org/10.1108/978-1-83549-454-720241015

Publisher

:

Emerald Publishing Limited