THE EFFECT OF INTER-INDUSTRY TRADE ON COMPETITIVENESS; AN EVALUATION IN THE CONTEXT OF TURKEY

Abstract

Abstract Considering that the competitiveness of a country's industries is determined by many micro and macro factors, Intra-Industry Trade (IIT) in an industry determines many features of this industry such as supply-demand, product price and quality, competition and in this context affects the competitiveness of the industry. is being evaluated. Purpose: In our study, it was aimed to determine the correlation between IIT and competitiveness in Turkey's foreign trade between 2001-2019 on the basis of chapter 97 of HS/GTİP. In our research, the degree of intra-industry trade was measured by the Grubel-Lloyd method. Vollrath's (1991) Revealed Comparative Advantage (RCA) method was used to measure competitiveness. Method: The degree of intra-industry trade was measured by the Grubel-Lloyd method. Vollrath's (1991) Revealed Comparative Advantage (RCA) method was used to measure competitiveness. Correlation analysis and panel data analysis were used to determine the relationship between IIT and competitiveness. Findings: There was a very high positive correlation between IIT and competitiveness in 27 chapters and a very high negative correlation in 24 chapters. High positive correlation was determined in 24 chapters and high negative correlation was determined in 6 chapters. Within the framework of the findings, it can be stated that there is a high or very high correlation between the IIT and competitiveness, which varies according to the chapters. It was observed that the results of the Panel Data Analysis in the study were also compatible with the results of the Correlation Analysis. Originality: It is considered that it will be beneficial to carry this study and its results, which is unique for Turkey, forward and to produce guiding results in economy, development, industrialization and foreign trade policies.