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

Emine Kilavuz, Hatice Erkekoglu and Bet l Altay Topcu
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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

International Journal of Economics and Financial Issues, 2013, vol. 3, issue 4, 799 - 812

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.

Keywords: Turkey; Global Production Process; Horizontal and Vertical Intra-Industry Trade; High and Low Quality Intra-Industry Trade (search for similar items in EconPapers)
JEL-codes: F13 F14 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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