The effect of Turkish automotive sector on economic growth

The automotive sector plays a key role, especially for developing countries and developed countries. One of the most important stakeholders of countries with strong economies within the framework of industrialization is that they have an industrialized automotive sector. With a holistic perspective, it would be more appropriate to evaluate the automotive sector not only with its main industry but also with the sub-sectors that interact although not within the sector. Considering its area of influence, the automotive industry has become one of the most important indicators of the development levels of countries. In this study, it is aimed to examine the effects of the Turkish automotive industry on economic growth. In this context, quarterly data from 1998Q2-2019Q4 were used for empirical analysis in which the impact of automotive exports on growth was examined. GDP value was used to express the growth value and this value was obtained from the OECD database. The data required for automotive exports were obtained from TUIK. Monthly data was edited by the author and turned into a quarterly in order to be compatible with GDP data. In the analysis, the descriptive statistics values of the variables were first included. Then ADF and Phillips Perron unit root tests were applied and ARDL tests were applied for the variables that were stationary at different levels in line with the results. Finally, Toda Yamamoto causality analysis was carried out to determine whether there is a connection between the variables and what direction if there is a connection. As a result of the analysis, it was found that there is a long-term relationship between automotive exports and economic growth. In addition, as a result of the causality analysis, it was found that there is a relationship between GDP and automotive exports.