COMPARATIVE ADVANTAGE OF TURKISH AEROSPACE INDUSTRY IN THE CONTEXT OF INDUSTRIAL CLUSTERS

Abstract

The purpose of this study is to investigate the relative comparative advantage and specialization level of Turkey’s aerospace industry under industrial clustering context. To estimate the degree of industrial specialization; Balassa (1965), Balassa-Noland (1989), Vollrath (1991), and Laursen (2015) indices were used. The results revealed that Turkey's aerospace industry has not yet reached the specialization level to create any comparative advantage. In the light of concurrent data and reports presented by the World Trade Organization (2022), Defense Industry Manufacturers Association of Turkey (2022), and Turkish Exporters’ Assembly (2022); it is seen that the industry outputs are almost entirely created by aerospace clusters’ stakeholders in Turkey. From this point of view, some policy recommendations are presented by synthesizing the research findings with the industrial cluster literature.