The Turkish and South Korean automobile industries and the role of the state in their development

Date

1999

Author

Erdoğdu, M. Mustafa

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This paper is an attempt to identify the role of the state in the development of the Korean and Turkish automobile industries. South Korea and Turkey started to produce passenger cars at around the same time in the early 1960s. Turkey was the leader in production in the early 1970s, but from 1978 onwards Korea took the lead and finally became the fourth largest automobile manufacturer in the world in 1999. The Turkish automobile industry, on the other hand, was marginalized. This paper suggests that one of the main reasons for this has been the diminishing role of the state in the industrialization efforts in Turkey from the late 1970s on. In light of a comparative historical analysis of the development of Korean and Turkish automobile industries, it is argued that the pace of industrial transformation can be accelerated by well-directed proactive state intervention.

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http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd
https://hdl.handle.net/11511/108236

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Department of Economics, Article