Historic market cycles in the world automotive industry

Wissenschaftlicher Aufsatz aus dem Jahr 2009 im Fachbereich BWL - Unternehmensforschung Operations Research Sprache: Deutsch Abstract: The economic theory of industry lifecycles is a standard tool to explore the historic development of specific industries. Its basic idea is that an industry develops according to a typical sequential pattern of emergence rise maturing and finally decay. This article compares conventional industry lifecycle theory as represented by the seminal approach of Gort and Klepper (Gort / Klepper 1982) with an alternative explanation of industry evolution i.e. the application of Hirschman''s theory of economic development (Hirschman 1958; Hirschman 1968) to specific industries. The world passenger car industry and its long-term history serve as the case of empiric reference. The analysis is non-technical and rests on a limited set of macroscopic parameters (number of manufacturers market entry and exit output) in the World''s regions (Europe the Americas Asia including Oceania).