Economic Growth in Selected Economies and Automotive Industries through the Prism of Schumpeterian Business Cycle Theory

Abstract: Under the current economic situation, the major economies of the world are experiencing a significant downturn. Simultaneously, the automotive industries of certain prominent economies are experiencing comparable downturns. This study seeks to examine the commonalities between these downturns through the prism of Schumpeterian Business Cycle theory. The study looks to macroeconomic indicators from the US, Japan, Germany and the EU15, and compares these figures to data for the respective automotive industries of each economy over the last three to five decades. The findings show some potential commonalities in growth cycles, productivity increases, and simultaneous downturns which have the possibility to substantiate Schumpeterian Business Cycle analysis in this context.