Necessary fiscal measures to ıncrease productivity in developing countries: Comparison of turkish automotive sector with brıcs countries

Abstract

Productivity is defined as the relationship between the inputs used in the production process and the outputs generated, and it also refers to the quantity of goods or services produced per unit of input. An increase in productivity is a crucial indicator of the development level and market value of both countries and businesses. Enhancing productivity is vital for managers, as it helps to reduce costs and effectively use scarce resources, thereby contributing to the economic development of businesses and countries. This study addresses the measures needed at both macro and micro levels to enhance productivity in developing countries, specifically comparing Turkiye with the BRICS countries in the automotive sector. The identification of income as the primary driver of productivity highlights the critical role that financial performance plays in the overall productivity of the sector, guiding stakeholders to focus their efforts on improving this metric. Furthermore, according to the entropy-weighted TOPSIS method, China emerged as the most productive country, followed by India in second place and Turkiye in third. The findings provide a strategic roadmap for policymakers and business leaders in developing countries to refine their strategies to enhance productivity, thereby ensuring a competitive edge in the global market. © 2024 The Authors.