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Determinants of Vertical Intra-Industry Trade of Turkey: Panel Data Approach

Pinar Narin Emirhan ()
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Pinar Narin Emirhan: Department of Economics, Faculty of Business, Dokuz Eylül University

No 05/05, Discussion Paper Series from Dokuz Eylül University, Faculty of Business, Department of Economics

Abstract: Intra-industry trade (IIT) is the simultaneous export and import of commodities that are classified in the same industry group. The literature on IIT deals with horizontal IIT and vertical IIT, which are concerned with trade of products that are at the same quality and those with different qualities, respectively. Vertical IIT accounts for 80 percent of total IIT of Turkey, therefore this paper focuses on vertical IIT. The aim of this study is to analyze the determinants of vertical IIT between Turkey and 9 major trading partners (namely, Belgium, France, Germany, Greece, Italy, Netherlands, Spain, United Kingdom and United States of America) for the 1989-2002 period by using panel data approach. The findings of this paper will shed a light on the future foreign trade policy of Turkey.

Keywords: Intra-industry trade; vertical differentiation; panel data (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2005-11-23, Revised 2005-11-23
New Economics Papers: this item is included in nep-cwa and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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