Current Account Deficit and Automotive Sector Nexus in Turkey: An Input-Output Analysis

Abstract

The automotive sector plays a significant role in the Turkish economy in creating relatively high added value and employment and accelerating the country's global trade share. The sector is so substantial that it has become the leader in Turkish exports in the last decade. There are plenty of papers in the literature regarding the automotive sector and economic growth nexus and implementing various methods. Still, hardly any studies focus merely on the current account deficits the sector generates, incorporating an input-output analysis. This paper examines the automotive sector and current account deficit nexus through input-output analysis. The results highlight that the automotive sector is highly dependent on imports.

Effect and Mechanism of Economic Circulation in the Middle and Lower Reaches of the Yellow River: Multiregional Input–Output Model and Industrial Complex Network Approaches

“…Input-output (I-O) analysis is well established in the literature and its application procedures are substantially standardized, and the classic I-O model can provide a clear quantitative description of relationships among industries. However, experiences of different regions in many nations using the same or similar methods also addressed the limitations of this approach, which mainly relate to the core assumptions about the structure and nature of the economy [31,32]. A typical criticism of such I-O analysis is that the input coefficients are fixed and constant, which is too restrictive and unrealistic, because input coefficients can change with changing conditions [33].…”