## Czech Republic: Selected Issues

_IMF Staff Country Reports, January 20, 2023_

## Source details

**Canonical URL:** [Czech Republic: Selected Issues](https://www.imf.org/en/publications/cr/issues/2023/01/18/czech-republic-selected-issues-528333)

## Other formats

- [Markdown version](/en/publications/cr/issues/2023/01/18/czech-republic-selected-issues-528333/index.md)
- [Structured JSON version](/en/publications/cr/issues/2023/01/18/czech-republic-selected-issues-528333/index.json)
- [Bundle manifest](/en/publications/cr/issues/2023/01/18/czech-republic-selected-issues-528333/bundle-manifest.json)

## Bibliographic details
- Published: January 20, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400231582.002

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### Purpose and scope
- 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:
  - increasing labor productivity,
  - boosting production capabilities in the current set of specialties,
  - moving up the global value chain.
- Investigates the potential impact of a transition to electric vehicles in Europe using a combination of data and modeling techniques.

### Key findings on Czechia’s automotive sector
- 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.

### Model description and calibration
- Introduces a stylized structural model of automotive global value chains that includes distinct production of electric and combustion vehicles.
- The model:
  - describes the inter-connectedness of trade,
  - imbeds domestic capability features, including specialization along the global value chain,
  - is calibrated to capture key features of Czechia and Germany’s positions in global value chains,
  - captures key differences between electric and combustion vehicle production.

### Policy implications and recommendations
- Policies to consider for smoothing the transition to electric vehicle production in Czechia:
  - measures to increase labor productivity,
  - measures to boost production capabilities within existing specialties,
  - measures to facilitate moving up the global value chain (higher value-added and skill-intensive activities).
- The analysis implies a combination of capability-building and productivity-enhancing policies will be important to manage structural shifts in the automotive sector.

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## Content in this bundle

- **Czech Republic: Selected Issues; IMF Country Report No. 23/32; December 12, 2022**
  - [Czech Republic: Selected Issues; IMF Country Report No. 23/32; December 12, 2022 (Markdown version)](/-/media/files/publications/cr/2023/english/1czeea2023002.pdf.md){rel="alternate" type="text/markdown"}
  - [Czech Republic: Selected Issues; IMF Country Report No. 23/32; December 12, 2022 (PDF)](/-/media/files/publications/cr/2023/english/1czeea2023002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2023/01/18/czech-republic-selected-issues-528333_