Evaluation of the Factors that Influence the EU Automobile Industry during the Period of Financial Crisis

Abstract

Since EU automobile industry has not completely recovered after the recent financial crisis, it is purposeful to identify what factors could have determined the recession of the EU automobile industry. The article is aimed at the evaluation of the factors that influence the automobile industry in the EU during the period of financial crisis. The methods of the research include correlation analysis and multifaceted regression analysis. The research has enabled to establish the impact of macroeconomic factors on the EU automobile production whereas the factors that influence the EU automobile demand have been researched only partly due to non-stationarity of the statistical data. Although the data was differentiated to make it stationary, the differentiation too significantly changed data values and correlation coefficients to make reliable conclusions. For the comprehensive analysis, the Vector Error Correlation Model (VECM) should be applied.

DOI: 10.5901/mjss.2014.v5n27p1735