The Role of the Automotive Industry in the Development of Industrialization and Motorization in Venezuela Cover Image

Rola przemysłu samochodowego w industrializacji i motoryzacji Wenezueli
The Role of the Automotive Industry in the Development of Industrialization and Motorization in Venezuela

Author(s): Mirosław Wójtowicz
Subject(s): National Economy, Recent History (1900 till today), Economic development, Socio-Economic Research
Published by: Wydawnictwo Uniwersytetu Komisji Edukacji Narodowej w Krakowie
Keywords: automotive industry; industrialization; motorization; socio-economic development; Venezuela;

Summary/Abstract: The aim of this article is to define the role of the automobile industry in the process of industrialization and motorization in Venezuela. This country entered the path of industrialization at the beginning of the 20th century reinvesting part of the funds obtained from oil export. The oil sector has gradually become the main source of income that could have been spent on the development of the country and other sectors of the economy. On the other hand, the excessive dominance proved to be detrimental to the development of other sectors, especially in the manufacturing industry. The automotive industry, which was initially successful and recorded rapid growth in production, in the long run turned out to be poorly embedded into the domestic economy and highly dependent on the imported parts. The small local market did not guarantee a relatively large group of companies that decided to invest in the production of cars, neither opportunities to achieve profitable scale of production, nor ability to compete in foreign markets. Consequently, the resulting automotive sector is relatively small, poorly integrated into local productive structures, heavily dependent on imported auto parts and components, and in the face of increasing trade liberalization its products are becoming less competitive in comparison to imported vehicles.

  • Issue Year: 32/2018
  • Issue No: 2
  • Page Range: 83-104
  • Page Count: 22
  • Language: Polish