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Determinants of Intra-Industry Trade in Final Goods and Intermediate Goods between Turkey and Selected OECD Countries

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Author Info
Kemal Turkcan () (Osmangazi University)

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Abstract

The increased importance of fragmentation in world trade has created an interest among trade economists to explain the determinants of trade in intermediate goods. A significant portion of trade in intermediates between Turkey and OECD countries takes the form of intra-industry (IIT). Country-specific and industry-specific hypotheses drawn from the IIT literature are put forward to investigate the IIT in final and intermediates between Turkey and other selected OECD countries for the period of 1985-2000. To test these hypotheses, we have utilized three-way fixed effects and random effects models. The results indicate that the determinants of IIT for final goods are not much different from those for intermediate goods. Finally, the results suggest that country-specific rather than industry-specific variables are the central determinants of IIT in final and intermediate goods between Turkey and OECD.

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File URL: http://eidergisi.istanbul.edu.tr/sayi1/iueis1m3.pdf
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Publisher Info
Article provided by Department of Econometrics, Faculty of Economics, Istanbul University in its journal Istanbul University Econometrics and Statistics e-Journal.

Volume (Year): 1 (2005)
Issue (Month): 1 (May)
Pages: 21-40
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Handle: RePEc:ist:ancoec:v:1:y:2005:i:1:p:21-40

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Related research
Keywords: Fragmentation; Outsourcing; Final Goods; Intermediate Goods; Intra-Industry Trade; Panel Econometrics; OECD; Turkey;

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Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
R13 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

References listed on IDEAS
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  5. Joan Martín-Montaner & Vicente Ríos, 2002. "Vertical specialization and intra-industry trade: The role of factor endowments," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(2), pages 340-365, June. [Downloadable!] (restricted)
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  7. repec:fth:michin:339 is not listed on IDEAS
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  1. Sule Akkoyunlu & Konstantin A. Kholodilin & Boriss Siliverstovs, 2006. "The Effect of Economic Reforms of 1980s and of the Customs Union 1996 upon the Turkish Intra-Industry Trade," Discussion Papers of DIW Berlin 649, DIW Berlin, German Institute for Economic Research. [Downloadable!]
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