erc/metu
INTERNATIONAL CONFERENCE IN ECONOMICS  IV
September 13-16, 2000, Ankara

Sectoral Pattern of Intra-Industry Trade Expansion in Turkey over Time

Hayriye Atik (Erciyes University)

Abstract

Intra-industry trade is defined as the simultaneous import and export of products which are close substitutes in production and consumption. Most studies indicated that intra-industry trade has increased between industrialised countries after 1960s. Theories of intra-industry trade offer only three important explanations for intra-industry trade expansion: rising per capita incomes, diminishing differences in per capita incomes and trade liberalisation (Schüler, 1995). Composition of trade in Turkey has changed in the process of industrial development. Turkish exports have become more competitive and diversified after 1980s. Export diversification has shifted the composition of exports from “traditional” to “non-traditional sectors”. This change increased intra-industry trade expansion in Turkey.

This paper deals with the behaviour of intra-industry trade through time in Turkey. We focus on the sectoral pattern of intra-industry trade expansion in the process of industrial development. The paper aims to come to conclusions about the underlying determinants of intra-industry trade expansion in Turkey. We compute intra-industry trade for various goods. Trade statistics arranged according to Broad Economic Categories (BEC) and Standard Industrial Trade Classification (SITC) are used to show intra-industry trade expansion in Turkey. Regional pattern of intra-industry trade expansion will also be analysed in this paper. Especially Grubel/Lloyd measure and other measures recommended in Greenaway and Milner (1986) are used to measure intra-industry trade.

Economic Research Center
Middle East Technical University
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