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Globalizing Production Structure and Intra-Industry Trade: The Case of Turkey

Author

Listed:
  • Emine Kilavuz

    (Erciyes University, Faculty of Economics and Administrative Sciences,Kayseri, Turkey)

  • Hatice Erkekoglu

    (Erciyes University, Social Sciences Vocational College,Kayseri, Turkey)

  • Bet l Altay Topcu

    (Erciyes University, Kayseri Vocational School,Kayseri, Turkey)

Abstract

Globalization and increased competition have forced countries to pursue more competitive policies. Today's commodities are not homogeneous and also they cannot be produced in a single country or region. It is essential for countries to focus on products which have high added value or to optimize their natural resources in the most effective areas. In this study, intra-industry trade rates were calculated for sectors which constitute 60% of Turkey's overall export volume for the 1990-2011 period. Furthermore, vertical and horizontal intra-industry trade rates were measured and compared with Turkey's trading partners. It was concluded that the best-exporting sectors did not appear to have high intra-industry trade values and they tended to provide lower quality products into the global production process. In other words, Turkey is the part of the global production process within the framework of comparative advantage based on factor endowments.

Suggested Citation

  • Emine Kilavuz & Hatice Erkekoglu & Bet l Altay Topcu, 2013. "Globalizing Production Structure and Intra-Industry Trade: The Case of Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 3(4), pages 799-812.
    • Handle: RePEc:eco:journ1:2013-04-3
    as

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    References listed on IDEAS

    as
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    Cited by:

    1. Sakshi Aggarwal & Debashis Chakraborty, 2021. "Which Factors influence Vertical Intra-Industry Trade in India? Empirical Results from Panel Data Analysis," Working Papers 2154, Indian Institute of Foreign Trade.

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    More about this item

    Keywords

    Turkey; Global Production Process; Horizontal and Vertical Intra-Industry Trade; High and Low Quality Intra-Industry Trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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