International Conference on Eurasian Economies
1-3 July 2014 – Skopje, MACEDONIA
Paper detail
Paper ID : 903
Status : Paper published
Language : Turkish
Topic : International Trade and Globalization
Presenter: Muharrem Akın Doğanay
Session : 6B Uluslararası Ekonomi I
Foreign Direct Investment and Intra-Industry Trade: Causality Analysis of Transport Equipment Sector in Turkey (2006-2013)
Doğrudan Yabancı Yatırım ile Endüstri-içi Ticaret Arası İlişkiler: Türkiye’nin Ulaşım Araçları Sektörü Üzerine Bir Analiz (2006-2013)
- Muharrem Akın Doğanay (Karadeniz Technical University, Türkiye)
- Prof. Dr. Mustafa Kemal Değer (Karadeniz Technical University, Türkiye)
- Asst. Prof. Dr. Murat Can Genç (Karadeniz Technical University, Türkiye)
Abstract
The main purpose of this study is that to test empirically relationship between Intra-Industry Trade (IIT) and Foreign Direct Investment (FDI). In this study, the relationship between IIT and FDI was analysed using time series analysis for the Turkish transport equipment sector. For this purpose, FDI, import and export data in the transport equipment sector were obtained from the Central Bank of the Republic of Turkey and Turkish Statistical Institute. The period of the study has been limited between 2006:01 and 2013:11 due to constraints in the relevant data about the Turkish economy. In this study, the Grubel - Lloyd index have been derived using import and export values for the transport equipment sector in Turkey. This index and FDI in the transport equipment sector has been tested by the Granger causality analysis. The existence empirical and theoretical literature has not been reached any consensus about the relationship between the variables. Some researchers found a bilateral sign between FDI and IIT, while another studies show that there is some presence of unidirectional causality. This study's findings indicate that there is a unidirectional causality from FDI to IIT in the Turkish Transport equipment sector.
JEL codes: F14, F21
Doğanay, Muharrem Akın, Değer, Mustafa Kemal, Genç, Murat Can (2014). "Foreign Direct Investment and Intra-Industry Trade: Causality Analysis of Transport Equipment Sector in Turkey (2006-2013)" in Proceedings of International Conference of Eurasian Economies 2014, pp.405-409, Skopje, MACEDONIA.
DOI: https://doi.org/10.36880/C05.00903
Session 6B: Uluslararası Ekonomi I
