Analysis of the impact of China accession to the world transaction organization on the German automobile companies in the Chinese market

Abstract

The following document represents a master thesis dissertation, that consists of research in which its main objective is to research the impact of China’s accession to the World Transaction Organization on the German foreign automobile firms in the Chinese market. Prior to the analysis, this dissertation will introduce the overall situation, and changes in the Chinese automobile industry brought about by the accession to WTO. Afterward, from the perspective of Firms Deciding to do Foreign Direct Investment (FDI), this research focuses on analyzing three representative German companies, Volkswagen Group China, BMW Brilliance, and Beijing Benz. In the analysis process, we gather comprehensive data to perform the Granger causality test and conduct several cross-sectional comparisons. This approach allows us to illustrate the combined impact that China's accession to the WTO may have had on Volkswagen Group China, BMW Brilliance, and Beijing Benz, leading to a conclusive assessment of its effects on German automobile companies.