Assessment of the Determinants of Revealed Comparative Advantages in Türkiye's Manufacturing Sector in the Context of Selected European Countries

Abdullah Bahadır Şaşmaz

Article Details

Assessment of the Determinants of Revealed Comparative Advantages in Türkiye's Manufacturing Sector in the Context of Selected European Countries

Authors:

Abdullah Bahadır Şaşmaz

Publisher:

Selcuk University

Main Topics:

Uluslararası İktisat (Diğer)

Journal:

Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi Issue 56, pp.50-77

Document Type:

Article

Publication Date:

4/2025

Document Language:

English

Document ID (Org No.):

2001347152

pISSN:

2667-4750

Keywords:

Abstract:

 This study examines Türkiyes trade competitiveness in manufacturing sector SITC5-8 with 21 European economies from 1996 to 2021. The Balassa index results reveal that Türkiyes strongest competitiveness is in miscellaneous manufactured articles SITC8 and manufactured goods SITC6. Econometric models are employed to explore the factors influencing competitiveness across sectors. According to analysis, increase in GDP of trading partners generally weakens Türkiyes position in SITC5, 7  8 sectors. It is seen that economies of scale arising from free trade between trading countries do not significantly increase competitiveness. Geographic proximity increases the trade competitiveness of SITC5 and SITC7 sectors and when evaluated together with GDP data, it shows that the gravity model better explains these sectors. Investment in research and development has an impact on competitiveness in SITC7, aligning with Ricardian comparative advantages. Product differentiation and impact of Linder hypothesis appear more relevant for SITC6. Trade openness of partners presents a double-edged sword, harming competitiveness in SITC 8 due to increased partner productivity, while increasing competitiveness in SITC 7. While the appreciation of the currencies of trading partners reduces the competitiveness of SITC8 due to its dependence on intermediate goods, it has no statistical impact on other sectors. Periods of Turkish Lira depreciation 1999-2001  2018-2021 are found to negatively impact SITC8 competitiveness, highlighting its vulnerability to import dependence.

 This study examines Türkiyes trade competitiveness in manufacturing sector SITC5-8 with 21 European economies from 1996 to 2021. The Balassa index results reveal that Türkiyes strongest competitiveness is in miscellaneous manufactured articles SITC8 and manufactured goods SITC6. Econometric models are employed to explore the factors influencing competitiveness across sectors. According to analysis, increase in GDP of trading partners generally weakens Türkiyes position in SITC5, 7  8 sectors. It is seen that economies of scale arising from free trade between trading countries do not significantly increase competitiveness. Geographic proximity increases the trade competitiveness of SITC5 and SITC7 sectors and when evaluated together with GDP data, it shows that the gravity model better explains these sectors. Investment in research and development has an impact on competitiveness in SITC7, aligning with Ricardian comparative advantages. Product differentiation and impact of Linder hypothesis appear more relevant for SITC6. Trade openness of partners presents a double-edged sword, harming competitiveness in SITC 8 due to increased partner productivity, while increasing competitiveness in SITC 7. While the appreciation of the currencies of trading partners reduces the competitiveness of SITC8 due to its dependence on intermediate goods, it has no statistical impact on other sectors. Periods of Turkish Lira depreciation 1999-2001  2018-2021 are found to negatively impact SITC8 competitiveness, highlighting its vulnerability to import dependence.

 This study examines Türkiyes trade competitiveness in manufacturing sector SITC5-8 with 21 European economies from 1996 to 2021. The Balassa index results reveal that Türkiyes strongest competitiveness is in miscellaneous manufactured articles SITC8 and manufactured goods SITC6. Econometric models are employed to explore the factors influencing competitiveness across sectors. According to analysis, increase in GDP of trading partners generally weakens Türkiyes position in SITC5, 7  8 sectors. It is seen that economies of scale arising from free trade between trading countries do not significantly increase competitiveness. Geographic proximity increases the trade competitiveness of SITC5 and SITC7 sectors and when evaluated together with GDP data, it shows that the gravity model better explains these sectors. Investment in research and development has an impact on competitiveness in SITC7, aligning with Ricardian comparative advantages. Product differentiation and impact of Linder hypothesis appear more relevant for SITC6. Trade openness of partners presents a double-edged sword, harming competitiveness in SITC 8 due to increased partner productivity, while increasing competitiveness in SITC 7. While the appreciation of the currencies of trading partners reduces the competitiveness of SITC8 due to its dependence on intermediate goods, it has no statistical impact on other sectors. Periods of Turkish Lira depreciation 1999-2001  2018-2021 are found to negatively impact SITC8 competitiveness, highlighting its vulnerability to import dependence.

 Bu çalışma, Türkiyenin imalat sektöründeki SITC5-8 1996-2021 dönemi ticaret rekabet gücünü seçilmiş 21 Avrupa ekonomisiyle incelemektedir. Balassa endeksi sonuçları, Türkiyenin en güçlü rekabet gücünün çeşitli imalat mallarında SITC8 ve imalat mallarında SITC6 olduğunu ortaya koymaktadır. Sektörler arası rekabet gücünü etkileyen faktörleri araştırmak için ekonometrik modeller kullanılmaktadır. Analize göre ticaret ortaklarının GSYHsindeki artış genel olarak Türkiyenin SITC5, 7 ve 8 sektörlerindeki konumunu zayıflatmaktadır. Ticaret yapan ülkeler arasındaki serbest ticaretle ortaya çıkan ölçek ekonomilerinin rekabet gücünü anlamlı bir düzeyde artırmadığı görülmektedir. Coğrafi yakınlık, SITC5 ve SITC7 sektörlerinin ticaret rekabetçiliğini artırmakta ve GSYİH verileriyle birlikte değerlendirildiğinde, gravity modelin bu sektörleri daha iyi açıkladığını göstermektedir. Araştırma ve geliştirmeye yapılan yatırımın, Ricardocu karşılaştırmalı üstünlüklerle uyumlu olarak SITC7deki rekabet gücü üzerinde etkisi bulunmaktadır. Ürün farklılaştırması ve Linder hipotezinin etkisi, SITC6 daha alakalı görünmektedir. Ortakların ticari açıklığı, iki ucu keskin bir kılıç teşkil etmekte ve ortakların üretkenliğinin artması nedeniyle SITC 8deki rekabet gücüne zarar verirken SITC7de rekabet artışı sağlamaktadır. Ticaret ortaklarının para birimlerinin değer kazanması, ara mallara olan bağımlılık nedeniyle SITC8nin rekabet gücünü azaltırken, diğer sektörlere istatistiki açıdan bir etkide bulunmamaktadır. Türk Lirasının değer kaybı dönemlerinin 1999-2001 ve 2018-2021 SITC8in rekabet gücünü olumsuz etkileyerek ithalat bağımlılığına yönelik kırılganlığı işaret ettiği görülmektedir.

Article Details

Assessment of the Determinants of Revealed Comparative Advantages in Türkiye's Manufacturing Sector in the Context of Selected European Countries

Authors:

Abdullah Bahadır Şaşmaz

Publisher:

Selcuk University

Main Topics:

Uluslararası İktisat (Diğer)

Journal:

Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi Issue 56, pp.50-77

Document Type:

Article

Publication Date:

4/2025

Document Language:

English

Document ID (Org No.):

2001347152

pISSN:

2667-4750

Competitiveness

Revealed Comparative Advantages

Trade

Panel Data AnalysisRekabetçilik

Açıklanmış Karşılaştırmalı Üstünlükler

Ticaret

Panel Veri Analizi

Issues

Article Details

Authors: Abdullah Bahadır Şaşmaz

Publisher: Selcuk University

Main Topics: Uluslararası İktisat (Diğer)

Journal: Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi Issue 56, pp.50-77

Document Type: Article

Publication Date: 4/2025

Document Language: English

Document ID (Org No.): 2001347152

pISSN: 2667-4750

Issues

Authors:

Abdullah Bahadır Şaşmaz

Publisher:

Selcuk University

Main Topics:

Uluslararası İktisat (Diğer)

Journal:

Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi Issue 56, pp.50-77

Document Type:

Article

Publication Date:

4/2025

Document Language:

English

Document ID (Org No.):

2001347152

pISSN:

2667-4750