Panel estimating exports and imports of the automotive industry on economic growth: evidence of Austria, Hungary, and Romania

Abstract

The emerging automotive sector in Europe is again a concern after the COVID-19 pandemic storm. The automotive industry is essential to increasing revenue for a country and influencing an open economy. Even so, there are several manufacturers whose supply and demand for raw materials, costs, and employees are critical to the business activities of this sector. The objective of this study is to analyze the effect of exports and imports in the automotive industry on economic growth. The technical analysis used in this study is multiple regression to see the effect of the independent variables, exports, and imports, has on GDP as the dependent variable using panel data for 2017-2021. The data used is secondary, with the research object being Austria, Hungary, and Romania, countries in emerging markets in the European automotive sector. Findings regarding of the multiple-regression model, f-test and t-test show that the Austrian, Hungarian, and Romanian automotive industries significantly influence overall GDP, even though there are demands in the era of energy sustainability which is a significant concern for the government in creating an energy-efficient automotive industry.

Keywords

• import
• export
• gdp
• automotive sector