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A Sectoral Approach to the Surging Imports in Turkey

Author

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  • Alper Duman

    (Department of Economics, Izmir University of Economics)

  • Gul Ertan Ozguzer

    (Department of Economics, Izmir University of Economics)

Abstract

The dramatic surge in imports of goods and services without a concomitant surge in exports in Turkey deserves a sound explanation. The studies on the issue addressed increasing import dependency of the manufacturing sector in Turkey. This paper has attempted to scrutinize the reasons behind this phenomenon by looking not only at the manufacturing sector as the past studies did, but also at the other sectors of the economy. Using 1998 and 2002 Input -Output Tables, import requirement ratios have been calculated for 12 aggregate sectors. The results demonstrate that the contribution of the “wholesale and retail trade; repair of motor vehicles and household goods” sector to the increasing import dependency, hence to significantly rising imports, is greater than that of the manufacturing sector.

Suggested Citation

  • Alper Duman & Gul Ertan Ozguzer, 2010. "A Sectoral Approach to the Surging Imports in Turkey," Working Papers 1005, Izmir University of Economics.
    • Handle: RePEc:izm:wpaper:1005
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    File URL: http://eco.ieu.edu.tr/wp-content/wp1005.pdf
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    References listed on IDEAS

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    3. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
    4. Paul Krugman, 1995. "Growing World Trade: Causes and Consequences," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 327-377.
    5. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
    6. Avinash K. Dixit & Gene M. Grossman, 1982. "Trade and Protection with Multistage Production," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(4), pages 583-594.
    7. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
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    Cited by:

    1. Aşıcı, Ahmet Atıl, 2015. "On the sustainability of the economic growth path of Turkey: 1995–2009," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1731-1741.

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    More about this item

    Keywords

    Input-Output Model; import requirement ratio; sector analysis; Turkey;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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