The automotive industry concentration and the impact on growth in Turkey

The aim of this study is to determine the market structure of the automotive industry, which is one of the key industries in economy, through concentration analysis. Also, because of its close relationship with the other industries, the impact of automotive industry on economic growth is analyzed.In the first part of the study, the history of automotive industry, the effect of the sector in the contemporary age, the problems in the industry and the steps taken are discoursed. In the second part, the market structure of the industry is analyzed by concentration analysis to accurately determine the competition power of the industry and the course the industry should take. In the analysis, from the concetration measures, N-firm concentration rate (CRN), Hirschman-Herfindahl Index (HHI) and Entropy Index (EI) are used.In the third and last part of the study, the relationship between the automotive industry sales revenue, automotive industry sale exports and economic growth is analyzed with Granger Causality Test for 1982-2014 period. In the analysis, it is found that there is a two way causality relationship between the automotive industry sales revenue and the Gross Domestic Product (GDP).