International Conference on Eurasian Economies
9-11 September 2015 – Kazan, RUSSIA
Paper detail
Paper ID : 1364
Status : Paper published
Language : Turkish
Topic : International Trade and Globalization
Presenter: Prof. Dr. Mustafa Kemal Değer
Session : 3C Uluslararası Ticaret I
The Determinants of Turkey's Intra-Industry Trade with European Union Countries: The Gravity Model Results (1996-2013)
Türkiye’nin Avrupa Birliği Ülkeleri ile Endüstri-içi Ticaretinin Belirleyicileri: Çekim Modeli Sonuçları (1996-2013)
- Prof. Dr. Mustafa Kemal Değer (Karadeniz Technical University, Türkiye)
- Muharrem Akın Doğanay (Karadeniz Technical University, Türkiye)
- Asst. Prof. Dr. Osman Murat Telatar (Karadeniz Technical University, Türkiye)
Abstract
In recent years, structure of world trade is transformed to intra-industry trade (IIT) that is defined as the import and export of similar commodities. The transformation of foreign trade structure has led to increase either theoretical or empirical studies on IIT. A large part of the empirical studies on international trade deals with gravity model for explaining the determinants of foreign trade. According to gravity model, trade between countries, is affected negatively to the distance between them and positively to the size of the country. Similar statements can be used in terms of the determinants of IIT. Therefore, this study will be carried out determinants of IIT with using the gravity model. In this paper, determinants of intra-industry trade in manufacturing sectors between Turkey and European Union (EU) 15 countries will be estimated by panel data regression analysis in 1996-2013 periods. The results of this study indicate that market size and foreign direct investments have positive effects and distance between countries and real effective exchange rate have negative effects on Turkey’s manufacturing sector IIT with EU 15.
JEL codes: F14
Değer, Mustafa Kemal, Doğanay, Muharrem Akın, Telatar, Osman Murat (2015). "The Determinants of Turkey's Intra-Industry Trade with European Union Countries: The Gravity Model Results (1996-2013)" in Proceedings of International Conference of Eurasian Economies 2015, pp.423-430, Kazan, RUSSIA.
DOI: https://doi.org/10.36880/C06.01364
Session 3C: Uluslararası Ticaret I
