Global Production, National Institutions, and Skill Formation: The Political Economy of Training and Employment in Auto Parts Suppliers from Mexico and Turkey

Middle-income countries that experienced rapid growth in the 1990s and 2000s risk remaining in the middle-income trap if they do not shift from labor-intensive, low-value-added production to higher-value-added activities that require advanced skills. This book examines the skill systems in Mexico and Turkey, with a focus on auto parts producers, and the implications of these systems for their development. It adopts a multi-layered understanding of the skill system and investigates how the participation of local firms in global supply chains and their institutional environment affect firm-level skilling practices. It highlights key differences in the role of the state in the skills systems of Mexico and Turkey and investigates the implications of skilling practices for their high/low-road development prospects.

Format: Hardback
Length: 256 pages
Publication date: 03 February 2022
Publisher: Oxford University Press

Many middle-income countries (MICs) that experienced rapid growth in the 1990s and 2000s face the risk of remaining trapped in the middle-income trap unless they transition from labor-intensive, low-value-added production to higher value-added activities that require more advanced skills. To address the challenges faced by MICs in achieving high-road development, intermediate skills and vocational education and training (VET) systems that generate these skills are crucial. This book examines the skill systems in Mexico and Turkey, with a specific focus on auto parts producers, and explores the implications of these systems for these countries' development. It adopts a multi-layered understanding of the term "skill system," encompassing firm-level hiring and training practices as well as the national and global dynamics that influence these practices. Drawing on discussions around globalization, the convergence of economic activity versus national institutions, and divergence, as well as interviews with auto parts producers and stakeholders of the skill systems, the book examines how the participation of local firms in global supply chains and their institutional environment affect firm-level skilling practices. It highlights key differences in the role of the state in the skills systems of Mexico and Turkey and investigates the implications of skilling practices for the high/low-road development prospects of both nations.

Introduction:
In recent years, middle-income countries (MICs) have experienced significant economic growth, driven by factors such as globalization, technological advancements, and increased investment. However, this growth has not been evenly distributed, and many MICs have faced challenges in transitioning from low-income to high-income status. One of the key challenges facing MICs is the danger of remaining in the middle-income trap, where they are unable to move up the value chain and achieve sustainable economic growth.

The Middle-Income Trap:
The middle-income trap refers to a situation where a country experiences rapid growth in the early stages of development but fails to sustain this growth and eventually falls back into poverty. This trap is characterized by a lack of investment in human capital, technological upgrading, and innovation, which are essential for sustainable economic growth. Many MICs that experienced rapid growth in the 1990s and 2000s have been facing the danger of remaining in the middle-income trap unless they shift from labor-intensive, low-value-added production to higher value-added activities that require more advanced skills.

The Need for Skills Transition:
To escape the middle-income trap, MICs need to invest in skills development and training. This requires a shift from traditional education systems that focus on academic knowledge to vocational education and training (VET) systems that provide practical skills and knowledge that are in demand in the labor market. VET systems can help MICs develop the skills needed to compete in global markets and attract investment.

Skill Systems in Mexico and Turkey:
This book examines the skill systems in Mexico and Turkey, with a focus on auto parts producers. Mexico and Turkey are two examples of MICs that have experienced rapid growth in recent years but face challenges in transitioning to higher value-added activities. Both countries have developed their own unique skill systems, which have implications for their development prospects.

Skill Systems in Mexico:
In Mexico, the skill system is characterized by a strong focus on vocational education and training. The Mexican government has invested heavily in VET programs, which have helped to increase the number of skilled workers in the country. However, there are still challenges in the skill system, such as a lack of quality assurance, inadequate infrastructure, and limited access to financing.

Skill Systems in Turkey:
In Turkey, the skill system is characterized by a strong focus on technical education and training. The Turkish government has also invested heavily in VET programs, which have helped to increase the number of skilled workers in the country. However, there are also challenges in the skill system, such as a lack of coordination between different stakeholders, inadequate infrastructure, and limited access to financing.

Implications of Skill Systems for Development:
The skill systems in Mexico and Turkey have implications for their development prospects. In Mexico, the skill system has helped to increase the productivity of the labor force and attract investment. However, there are still challenges in the skill system that need to be addressed, such as a lack of quality assurance, inadequate infrastructure, and limited access to financing. In Turkey, the skill system has helped to increase the productivity of the labor force and attract investment. However, there are also challenges in the skill system that need to be addressed, such as a lack of coordination between different stakeholders, inadequate infrastructure, and limited access to financing.

Conclusion:
In conclusion, the skill systems in Mexico and Turkey have implications for their development prospects. To escape the middle-income trap and achieve sustainable economic growth, MICs need to invest in skills development and training. This requires a shift from traditional education systems to vocational education and training systems that provide practical skills and knowledge that are in demand in the labor market. By addressing the challenges in the skill systems, MICs can develop the skills needed to compete in global markets and attract investment.

Weight: 536g
Dimension: 240 x 162 x 20 (mm)
ISBN-13: 9780198860655