Structural Transitions to Electric Vehicle Production

Download or read book Structural Transitions to Electric Vehicle Production written by Neree C.G.M. Noumon and published by International Monetary Fund. This book was released on 2023-02-28 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.