The domestic auto industry has led the nation's economic growth and has grown up to be the world's fifth largest automotive producer. Particularly, the Dongnam Regional accounts for 30 percent of the national automobile productions. Thus, the strategi...
The domestic auto industry has led the nation's economic growth and has grown up to be the world's fifth largest automotive producer. Particularly, the Dongnam Regional accounts for 30 percent of the national automobile productions. Thus, the strategies and policies to develop the automobile parts industry as dynamic forces of a growth is necessary to ensure the global competitiveness.
The efficiency of the 97 automotive parts manufacturers in the Dongnam Regional was analyzed by DEA and Tobit Model, and the productivity was analyzed by Malmquist Productivity Index. This study has a significance since it revealed the relationship among efficiency, productivity, and enterprise characteristics through empirical analysis.
As a result, it was proved that the technical efficiency of the automotive parts manufacturers in the Dongnam Regional in 2010 was improved compared to 2005. This is attributed to the establishment of infrastructure to promote the automobile parts industry by the regional strategic industry promotion project conducted since 2005.
To sum up the results of the efficiency analysis, in order to improve the technical efficiency, the expansion of leverage effects using debenture is necessary as well as the improvement of the capital ratio. The strategies leading the efficient corporate investments are needed to improve the scale efficiency. In addition, it is shown that the increase of the cash matching funds ratio of companies involved in national R&D enterprises to activate the corporate investment into R&D.
Furthermore, the analysis 며of the productivity by Malmquist Productivity Index is shown that the average productivity change of automotive parts manufacturers in the Dongnam Regional was increased. This is due to the advance of technology despite decrease of technical efficiency. Therefore, companies should be more concerned to improve the technical efficiency in order to seek sustainable growth and productivity improvement. And, companies should expand R&D investment to improve the existing production methods and to develop a new product.
Although the proportion of the domestic automobile production of the Dongnam Regional is more than 30%, inter-regional differences are serious and there is intense competition to attract top midsized companies to their region. According to the analysis of dynamics, the status of the industry of automobile parts in Dongnam Regional has been weakened. As the effect of efficiency and productivity are different depending on the region, regional characteristics should be considered when establishing a national policy.
Lastly, as the extend of automobile part industry abroad accompanied with automobile manufacturers are increasing, favorable conditions can sustain high value goods and a national key components manufacturing base should be provided to prevent a slowdown of export growth, foreign disclosure of core technologies, and decline in employment.
Therefore, national strategies and policies are required to develop auto parts industry which is dependent on the automotive industry as its own next-generation growth engine industries.