THE IMPACTS OF AUTOMOTIVE EXPORT ON DIRECT FOREIGN INVESTMENT AND ECONOMIC GROWTH: AN ECONOMETRIC APPLICATION ON TURKEY AND BRICS COUNTRIES
THE IMPACTS OF AUTOMOTIVE EXPORT ON DIRECT FOREIGN INVESTMENT AND ECONOMIC GROWTH: AN ECONOMETRIC APPLICATION ON TURKEY AND BRICS COUNTRIES

Summary/Abstract: Due to the developments of the technological era we are living in, export-led growth has gained momentum. While the added value and technological developments originating from the automotive sector are increasing the international competition, they also make the countries become automotive exporters with dependency on one other. The effect of this sector on the economic development and foreign trade of Turkey, Brazil, Russia, India, China, South Africa (BRICS) increases the need for more research. This study conducts an analysis on the effect of automotive export on foreign direct investment and development in Turkey and BRICS countries using panel regression analysis covering the period between 2000-2019. The variables of this study were found to be stationary variables on different levels and the suitable model was determined through the Hausman Test. The results of the panel regression model show that there is a significant relationship between macroeconomic variables. Accordingly, there was found to be a positive relationship between Gross Domestic Product, Foreign Direct Investment, and Automotive Export.

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