The Dependency of Import to The Export in Turkey: An Example of Automotive Sector

Developing countries have adopted outward-looking policies at the end of the 1980' s. Nevertheless, developing countries could not increase their exports in the manufacturing industry. Developing countries have to buy intermediate goods in order to increase their production and exports. As it is known, manufacturing industry needs foreign intermediate goods to get more production. In this perspective, automobile industry has the same problem because this sector also needs intermediate goods which are generally imported. This study examines the foreign dependency of automobile industry in Turkey after the period of 1998. For this purpose, we use input-output tables which are taken from Turk Stat (Turkish Statistical Institute) for the period of 1998 and 2002. Using these tables, the level of external dependency is calculated for automotive and side-industrial products and during the period of 2003-2010, 2002 inputoutput table is accepted as a base and calculating the difference between exports and imports and the differences between total production and total supply, the level of dependency of foreign automotive sector is evaluated.