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Automotıve Industry Incentıve System in the Hıstorıcal Development Process: Examples of Thailand and Turkey

Journal: International Journal of Arts and Social Science (Vol.5, No. 7)

Publication Date:

Authors : ;

Page : 14-298

Keywords : Interventionsystem; automotive industry; technology transfer; automotive industry production; economic development;

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Abstract

When we look at the historical development of the automotive industry of Thailand and Turkey, we find many common features and similarities. With import substitution economic model, just as in the economic development of Turkey in Thailand to provide pathway is preferred since the 1960s. Import substitution policies were combined with development policies by protecting the country's industries from foreign competition, and these policy options were implemented in both of our sample countries, especially in the automotive industry until the 1990s. Within the framework of the import substitution industrialization model, it was aimed to increase the local contribution rates in the automotive industry in every country, but although certain successes were achieved in these policies until the 1990s, free market economy (liberal economy) since the 1990s. the protection of the country's industries from foreign competition has been terminated. In this context, the automotive industries that failed to produce completely local products have tried to enable foreign automotive industry manufacturers to establish production facilities in their countries and to shift all their production to their own countries. Thailand was more successful in attracting foreign companies to the country by applying these policies. Having developed sectoral incentive policies for the automotive industry since the 1970s, Thailand continued to implement these economic policy instruments after the period of liberalization. Turkey In the 1990s, the özendirmişk to establish production facilities in the country of foreign companies, since the second half of the 2000s, has refused to give industry incentives to their own desires going to produce domestic car my saying, refused to give industry incentives they want to build a new production facility for foreigners to establish a production facility. It showed Thus, the success of the referred to as the economic policy of a stable line following Thailand is Asia's Detroit for the automotive industry, but have managed to pass on what domestic automobile production with the new political orientation of Turkey, what has also become a production base in the strict sense of the Far East Asian companies. Therefore, it can be said that countries should draw a stable line in developing economic policies to encourage foreign entry into sectors.

Last modified: 2023-02-11 13:18:54