1st ICAI 2020

International Conference on Automotive Industry 2020

Mladá Boleslav, Czech Republic

Figure 1: Decomposition of Economic Value Added (EVA) into value drivers

Source: Authors We use Pearson’s correlation coefficient ( ρ ) to identify whether there is a linear association between selected measures of financial performance (i) and the ratio measuring the importance of automotive industry, for example, automotive industry turnover to GDP (j). The correlation coefficient can range from -1 to 1. Zero indicates that there is no linear relationship whatsoever, whereas value close to |1| indicates strong direct (1) or indirect (-1) relationship.

(7)

3. Problem Solution According to our findings, the share of turnover generated by automotive companies to GDP of the EU-27 is around 8 – 9%. In the long term, Slovakia produces the highest share of turnover to GDP (34% in 2018), followed by the Czech Republic (24%), Germany (22%) and Hungary (20%). Taking turnover per capita into consideration mixes the order. From this perspective, Germany reaches the highest values, followed by Slovakia, the Czech Republic and Hungary. Germany therefore has a relatively low ratio of automotive industry turnover to GDP, but a high ratio of automotive industry turnover per capita. This is because Germany’s GDP is significantly higher than GDP produced by the countries of Central and Eastern Europe. The following table 1 shows the situation described.

189