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

Ceren Gündoğdu () and Dürdane Şirin Saracoğlu ()
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Ceren Gündoğdu: Republic of Turkey Ministry of Economy 06530 Ankara, Turkey
Dürdane Şirin Saracoğlu: Department of Economics, METU

No 1610, ERC Working Papers from ERC - Economic Research Center, Middle East Technical University

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.

Keywords: Global Value Chains; Backward participation; Vertical Specialization; WIOD; Turkey (search for similar items in EconPapers)
JEL-codes: F10 F13 F60 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2016-09, Revised 2016-09
New Economics Papers: this item is included in nep-ara, nep-cwa, nep-hme and nep-int
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http://erc.metu.edu.tr/en/system/files/menu/series16/1610.pdf First version, 2016 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:met:wpaper:1610

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