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Developmental State

How to Build an Automotive Industry: Lessons from Malaysia, Mexico, and East Asia

Across the developing world, governments share a common ambition: to build a globally competitive automotive industry. The promise is immense—thousands of high-quality jobs, deep industrial linkages, technological spillovers, and a pathway to high-income status. Yet for every country that has succeeded, many more have failed. Worse, they have failed in ways that are systematic and predictable.