Measuring intra-industry and marginal intra-industry trade - The case for Turkey

Erlat, Güzin
Erlat, Haluk
Works on whether Turkey's trade structure is predominantly interindustry or intra-industry and whether there has been a shift toward intra-industry trade (HT) after 1980 are of a limited number The present study attempts to shed some light on these questions, stressing, in particular changes in HT We consider Turkey's trade with the world for the 1969-99 period. We first use the Grubel-Lloyd (GL) index and find that there is a definite difference in the pattern of the weighted average of the three-digit (SITC, Rev. 3) sectoral GL indices, between the pre- and post- 1980 periods. Even though the rate of ITT is greater in the post-1980 period, the distribution of the three-digit sectors according to their GL index values shows that Turkey's international trade is predominantly interindustry (IT). We next use Brulhart's (1994) A, B, and C indices of marginal HT (MIIT) to investigate changes in HT over time. Both the A and B indices indicate that there has been a significant change in MIIT between the pre- and post- 1980 periods. We couple the C index, which gives us changes in the level of IIT for matched changes in trade, with Menon and Dixon's (1997) UMCIT index for unmatched changes, to assess the extent of adjustment required due to an increase in IIT. We find that, after 1980, gains in adjustment cost due to changes in HT given by C are larger than the increase in such costs due to changes in IT as given by UMCIT.


Measuring the persistence in trade patterns: the case for Turkey
Erlat, Güzin; Erlat, Haluk (2012-01-01)
We investigate whether the pattern of Turkish trade has a persistent nature or is dynamic, by considering 5-digit Rev. 3 trade data for the period 1969 to 2001 and investigating whether their distribution between sectors which are in surplus, in balance or in deficit, has shown persistence over time. The tools we use involve classifying the sectors as surplus, balance and deficit sectors and constructing a 3 x 3 contingency table, indicating whether sectors that, say, showed a surplus at the beginning of a ...
Customs Union Effect in International Trade: Turkish Case
Erdil, Erkan (2019-01-01)
This study is an attempt to analyze Customs Union effect in terms of co-integration and periodicity in international trade for Turkey. The most significant contribution of the paper is its use of improved methods to detect periodicity in international trade data. Customs Union (CU) with EU has shown to have significant impacts in EU-Turkey trade relations yet no other study measure the impact of CU in terms of periodicity. In order to search for hidden periodicities in the data, periodograms and periodogram...
The Turkish economy and the challenge of technology: a trade perspective
Ege, Aylin; Ege, A. Yavuz (2017-11-01)
This article provides an analysis of Turkish trade deficits from the perspective of technology, with particular focus on the period that began with the new millennium. It draws special attention to the technological structure of Turkish exports vis-a-vis Turkey's major trade partners and illustrates how Turkish trade deficits are primarily structural in nature and essentially caused by weak technology as compared with Turkey's partners. Turkish products lack competitiveness, particularly in the case of rela...
Optimal monetary policy and the timing of asset trade in open economies
Senay, Ozge; Sutherland, Alan (2007-05-01)
This paper analyses the timing of asset trade and its implications for monetary policy and welfare in open economies. Optimal policy is shown to differ significantly depending on whether asset trade takes place before or after policy decisions are made.
The formation and transformation of trade relationsin the European Union (1958-2018)
Akoğlu Şişman, Melda; Türkeş, Mustafa; Department of International Relations (2021-2-5)
This thesis explores the formation and transformation of the European Union’s (EU) trade relations in its integration process, mainly considering the enlargements it has completed so far. Therefore, it seeks to answer how the six founding-core members and the newcomers, who joined the EU after its establishment, have shaped the trade relations of the EU between 1958 and 2018. The methodology is to demonstrate the trade policy formation and its reflection on the EU’s actual trade relations by presenting deta...
Citation Formats
G. Erlat and H. Erlat, “Measuring intra-industry and marginal intra-industry trade - The case for Turkey,” EMERGING MARKETS FINANCE AND TRADE, pp. 5–38, 2003, Accessed: 00, 2020. [Online]. Available: