Analysis of Competitiveness of Turkey and Commonwealth of Independent States in their Automotive Market

Abstract

Automotive sector is a driving sector for countries due to forward and backward linkages and employment and value added it creates. Starting from this point, this study aims to analyze the competitiveness of CIS and Turkey automotive sector in their market. The competitiveness of the countries should be assessed with their production potential. The countries subject to the study are thirteen Eurasian countries, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Republic of Moldova, Russian Federation, Tajikistan, Turkey, Turkmenistan, Ukraine and Uzbekistan. The data from UNCTAD for 1995-2011 period for these countries and Liesner Index (RCAL), Balassa Index (RCA), Relative Trade Advantage Index (RTA) and Relative Competitiveness Index (RC) are used and the rank correlation between the outcomes are checked via Spearman Rank Correlation coefficient. According to the outcomes, Belarus, Turkey and Uzbekistan have higher comparative advantage compared to the other countries. The cooperation of these countries with Russia and Ukraine on production and trade of automotive sector will enhance their comparative advantage against third countries.

Etkinlik, Rantabilite ve İhracat Rekabet Gücü Arasındaki İlişki: Türk Otomotiv Sektörü Üzerine Bir Uygulama

“…When economic and financial rantability ratio analysis are evaluated with the results of financial efficiency (DEA, TFP) analysis and export competitiveness analysis, it is seen that there is a relationship between the variables. Accordingly, it is observed that the scores related to export competitiveness increased in 2007, 2008, 2013in which the TFP increased. Conversely, export competitiveness decreased in 2009, 2012, 2014 when the TFP decreased.…”

“…According to the results of the Herfindahl-Hirschman index, it was concluded that the market was close to monopolistic competition. Başkol (2008Başkol ( , 2011, Özdamar and Albeni (2011), Bozdağ and Saraçoğlu (2013), Terregrossa and Gönel (2014) and Vošta and Kocourek (2016) conducted studies on the competitiveness (export competitiveness) of the automotive sector on a macro basis and used predominantly the RCA indices. Başkol (2008Başkol ( , 2011 calculated the competitiveness of Turkish automotive sector.…”

“…It was concluded that Turkey had competitiveness in the product group of lorry-van after 2002 and of minibus-midibus-bus after 1990. Bozdağ and Saraçoğlu (2013) examined automotive exports competitiveness of Turkey and Commonwealth of Independent States in 1995-2011 period by using the BI. It was concluded that only Uzbekistan, Belarus and Turkey among the countries in question had competitiveness in the export of the sector.…”