Research into effects of COVİD-19 pandemic on automotive sector approach with panel data econometrics

This study has been made for the purpose of analyzing the effect of Covid-19 pandemic on automotiv sector. In this direction, including Turkey and 22 EU countries datas analyzed with panel data econometrics method. Datas are consists of totally 8 quarterly period. Time period was chosen as before pandemic 4 and after pandemic 4 period. In the model, dependent variable is automotive sales and independent variables are GDP, Inflation, Unemployment, Exchange Rate, Motor Vehicle Industrial Production Index, Population and Pandemic. In this context, Common Effect, Fixed Effect and Random Effect models were estimated. Later to determine optimal model, various tests was used. In the result of tests, optimal model was determined as Fixed Effect model. In the end various econometric assumptions was applied to model and result of assumption violation robust estimators was applied. As a result of this study we find that effect of Covid-19 on automotive sector is in a negative way and pandemic reduced the automotive sales by %6.7.