The Analysis of Turkey-Russia External Trade at the Sectoral Level

Abstract

Generally the growth of country and the development of countries’regional level depend upon the competitive power of other countries and their regions as well. In this context with globalization, the concept of competition in terms of individuals or firms have been not only limited to the local level, but also moved into the international order. Turkey has started to implement export-oriented industrialization policy taken decision on 24 April 1980 and thereby the capacity of its foreign trade has gradually increased in the current process. Starting from this direction, the aim of the study is to determine the sectoral analysis of the 2001-2014 periods in terms of the foreign trade relationship between Turkey and Russia. The main purpose of this study is to analyze the Turkey-Russia’s foreign trade on the basis of commodity groups. In this study, commodity group data located in Standard International Trade Classification obtained from the Turkey Statistical Institute database was used. In the analysis of study the Revealed Comparative Advantage index was calculated to measure the strength of competition between Turkey and Russia. Since the 2000s, considering Russia’s trade profile as one of the Turkey's most important trade partner, energy and natural resources in exports and consumer goods in import have a siginificant share in trade between these contries. In conclusion, despite the increasing trade between the two countries, in terms of assestment of the competitive power and the commodity group, it has been found that leading countries has not been changed.