Seluk J. Appl. Math. Seluk Journal of Vol. 8. No.2. pp. 37 - 47 , 2007 Applied Mathematics Automotive Business with Foreign Capital in Turkey and an Econo- metrics Application Haldun Soydal and Serdar Alt‹nok Faculty of Economics and Administrative Sciences, Department of Economics Policy A.Keykubat Campus 42075 Konya/Turkey; e-mail: hsoydal @ selcuk.edu.tr, saltinok @ selcuk.edu.tr Received : June 28, 2007 Summary. In Turkey, among the business with foreign capital which work- ing order automotive sector has an important place. Since automotive business with foreign capital are big companies that can be essential to Turkeys prob- lems in terms of macroeconomics. These businesses are highly protable for Turkeys economy in terms of employment, manufacture and export. Therefore, automotive business with foreign capital which are important are studied as an empirical study among their income, exchange rate, production, employment with the help of an econometrics analysis. Key words: Econometrics analysis, automotive, granger, export, VAR model, production. 1. Introduction Due to the globalization, foreign direct investment has been increased very rapidly and reaches 1 billion $ volume totally in the world and also very impor- tant for Turkey. It is anticipated that Turkey should pull 30 and 50 billion $ foreign direct investment annually due to the FIAS report in respect of its huge internal market and location. In recent years, although 20 billion $ has been directed by the help of privatization, this amount is not enough for high ex- pectations. Because Turkey needs much amount of foreign direct investment in case increasing current account decit has been resolved. In this study, not only the e/ect of foreign direct investment over export ratio and its trends has been evaluated but also some inferences has been conducted by Granger econometric test. 37