{
  "title": "Czech Republic: Selected Issues",
  "publication": "IMF Staff Country Reports, January 20, 2023",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2023/01/18/czech-republic-selected-issues-528333",
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  "summary": "This Selected Issues paper examines—through the lenses of a structural model of global value chains—policies that could smooth the transition to the production of electric vehicles in Czechia economy context.",
  "sections": [
    {
      "heading": "Purpose and scope",
      "content": "- Examines, through the lenses of a structural model of global value chains, policies that could smooth the transition to the production of electric vehicles in Czechia economy context.\n- Analyzes impacts of a broad set of policies related to:\n  - increasing labor productivity,\n  - boosting production capabilities in the current set of specialties,\n  - moving up the global value chain.\n- Investigates the potential impact of a transition to electric vehicles in Europe using a combination of data and modeling techniques."
    },
    {
      "heading": "Key findings on Czechia’s automotive sector",
      "content": "- Czechia automotive sector’s value-added share and skill intensity are comparatively lower in the regional context.\n- The paper highlights differences between electric and combustion vehicle production relevant for policy and capability development."
    },
    {
      "heading": "Model description and calibration",
      "content": "- Introduces a stylized structural model of automotive global value chains that includes distinct production of electric and combustion vehicles.\n- The model:\n  - describes the inter-connectedness of trade,\n  - imbeds domestic capability features, including specialization along the global value chain,\n  - is calibrated to capture key features of Czechia and Germany’s positions in global value chains,\n  - captures key differences between electric and combustion vehicle production."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Policies to consider for smoothing the transition to electric vehicle production in Czechia:\n  - measures to increase labor productivity,\n  - measures to boost production capabilities within existing specialties,\n  - measures to facilitate moving up the global value chain (higher value-added and skill-intensive activities).\n- The analysis implies a combination of capability-building and productivity-enhancing policies will be important to manage structural shifts in the automotive sector.\n\n---\n\n Content in this bundle\n\n- Czech Republic: Selected Issues; IMF Country Report No. 23/32; December 12, 2022\n  - Czech Republic: Selected Issues; IMF Country Report No. 23/32; December 12, 2022 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Czech Republic: Selected Issues; IMF Country Report No. 23/32; December 12, 2022 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "[Markdown version](/en/publications/cr/issues/2023/01/18/czech-republic-selected-issues-528333/index.md)",
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    "Published: January 20, 2023",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798400231582.002",
    "Examines, through the lenses of a structural model of global value chains, policies that could smooth the transition to the production of electric vehicles in Czechia economy context.",
    "Analyzes impacts of a broad set of policies related to:",
    "Investigates the potential impact of a transition to electric vehicles in Europe using a combination of data and modeling techniques.",
    "Czechia automotive sector’s value-added share and skill intensity are comparatively lower in the regional context.",
    "The paper highlights differences between electric and combustion vehicle production relevant for policy and capability development.",
    "Introduces a stylized structural model of automotive global value chains that includes distinct production of electric and combustion vehicles.",
    "The model:",
    "Policies to consider for smoothing the transition to electric vehicle production in Czechia:",
    "The analysis implies a combination of capability-building and productivity-enhancing policies will be important to manage structural shifts in the automotive sector.",
    "**Czech Republic: Selected Issues; IMF Country Report No. 23/32; December 12, 2022**"
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