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

Intra Industry Trade Patterns of Turkey: A Panel Study

Elif Çepni (Gazi University)
Nezir Köse (Gazi University)

Abstract

Intra Industry Trade(IIT) is the simultaneous import and export of goods within the same industry. There is an evidence that there is IIT, and it forms a significant portion of all trade for developed economies. Balassa and Bauwens (1987), Greenaway and Milner (1986) and other studies provide hypotheses concerning IIT. These hypotheses can be classified into two groups; country specific and industry specific hypotheses. The extent of IIT between any two countries will be ; positively correlated a)with their average per capita income, b)with their average size, (economies of scale), c) with the existence of common borders, d) with their joint participation in a regional integration and negatively correlated a)with the differences between their per capita income(differences in their demand structure), b) with the difference between their size, c) with the distance between them, d) with their average level of trade barriers. In this study not only IIT indexes will be calculated for the period 1988-1998 for Turkey but also above hypotheses will be tested using pooled cross section and time series regression analysis for Turkey’s trade with 13 countries. To measure IIT, adjusted Grubel Lloyd(1975) index using Standard International Trade classification (SITC) at the 2-digit level will be used.

Economic Research Center
Middle East Technical University
06531 Ankara Turkey
Phone: + 90 312 210 3044, 210 2003
Fax: +90 312 210 1244
e-mail: metuerc@metu.edu.tr