An Econometric Analysis on Factors Affecting Intra-Industry Trade in Turkish Automotive Industry

Abstract

Purpose: It is to empirically examine the factors affecting intra-industry trade in the automotive sector between Turkey and 24 OECD member trade partners. Design/Methodology: The determinants of intra-industry trade were tested with panel data analysis in the automotive sector. As a result of the test carried out to determine the model, regression analysis was performed with the Driscoll-Kraay standard error estimation method. Findings: The variables market size, development level, and trade openness have a positive impact on intra-industrial trade, while the variables market size difference, income inequality, and geographical distance have a reverse impact on intra-industry trade. Limitations: Export and import data for 2003–2019 are used in international trade figures in the 3-digit Standard International Trade Classification, SITC Revision-3. Originality/Value: Empirical application on the factors affecting intra-industry trade in the Turkish automotive sector is considered to be important and different in terms of subject.