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Participation of Turkey in Global Value Chains: An Analysis Based on World Input Output Database

Author

Listed:
  • Ceren Gündoğdu

    (Republic of Turkey Ministry of Economy 06530 Ankara, Turkey)

  • Dürdane Şirin Saracoğlu

    (Department of Economics, METU)

Abstract

This study examines the trends in Turkey’s participation in Global Value Chains (GVCs), particularly through backward integration (i.e. vertical specialization-VS or the foreign content of value added in exports) between 1995 and 2011 utilizing the World Input Output Database (WIOD), and this is the first attempt to adopt WIOD for analyzing VS in Turkish exports at sectoral and trade partner dimensions. The findings show that Turkey’s VS has increased between 1995 and 2011. Considering the sectoral trends in manufacturing with respect to technological classification, especially in the 2000’s, Turkey’s VS share in mid-high and high-tech sectors has increased faster than that in mid-low as well as low tech sectors. At individual partner level, Germany, China, Italy and France play important roles in VS of Turkish exports. Although Germany sustained the largest contribution to Turkey’s VS up to 2010, in 2010 China became the top contributing country; however this contribution is chiefly in a low-tech industry such as textiles, thus is not necessarily conducive to Turkey’s upgrading her position in GVCs. In that respect, integration into the GVCs through technology-intensive sectors via the technology imported from developed countries might better help improve Turkey’s position in the world markets.

Suggested Citation

  • Ceren Gündoğdu & Dürdane Şirin Saracoğlu, 2016. "Participation of Turkey in Global Value Chains: An Analysis Based on World Input Output Database," ERC Working Papers 1610, ERC - Economic Research Center, Middle East Technical University, revised Sep 2016.
    • Handle: RePEc:met:wpaper:1610
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    References listed on IDEAS

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    More about this item

    Keywords

    Global Value Chains; Backward participation; Vertical Specialization; WIOD; Turkey;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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