Determinants of Intra-Industry Trade in Final Goods and Intermediate Goods between Turkey and Selected OECD Countries
AbstractThe 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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Bibliographic InfoArticle 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)
Fragmentation; Outsourcing; Final Goods; Intermediate Goods; Intra-Industry Trade; Panel Econometrics; OECD; Turkey;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
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