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Determinants of Vertical Intra-Industry Trade of Turkey: Panel Data Approach

Author

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  • Pinar Narin Emirhan

    (Department of Economics, Faculty of Business, Dokuz Eylül University)

Abstract

Intra-industry trade (IIT) is the simultaneous export and import of commodities that are classified in the same industry group. The literature on IIT deals with horizontal IIT and vertical IIT, which are concerned with trade of products that are at the same quality and those with different qualities, respectively. Vertical IIT accounts for 80 percent of total IIT of Turkey, therefore this paper focuses on vertical IIT. The aim of this study is to analyze the determinants of vertical IIT between Turkey and 9 major trading partners (namely, Belgium, France, Germany, Greece, Italy, Netherlands, Spain, United Kingdom and United States of America) for the 1989-2002 period by using panel data approach. The findings of this paper will shed a light on the future foreign trade policy of Turkey.

Suggested Citation

  • Pinar Narin Emirhan, 2005. "Determinants of Vertical Intra-Industry Trade of Turkey: Panel Data Approach," Discussion Paper Series 05/05, Dokuz Eylül University, Faculty of Business, Department of Economics, revised 23 Nov 2005.
    • Handle: RePEc:deu:dpaper:0505
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    References listed on IDEAS

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    4. David Greenaway & Robert Hine & Chris Milner, 1994. "Country-specific factors and the pattern of horizontal and vertical intra-industry trade in the UK," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(1), pages 77-100, March.
    5. Kamal Abd-el-Rahman, 1991. "Firms’ competitive and national comparative advantages as joint determinants of trade composition," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(1), pages 83-97, March.
    6. Joe Stone & Hyun-Hoon Lee, 1995. "Determinants of intra-industry trade: A longitudinal, cross-country analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 131(1), pages 67-85, March.
    7. Güzin Erlat & Haluk Erlat, 2003. "Measuring Intra-Industry and Marginal Intra-Industry Trade : The Case for Turkey," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 39(6), pages 5-38, November.
    8. Xiaoling Hu & Yue Ma, 1999. "International intra-industry trade of China," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(1), pages 82-101, March.
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    10. Choorikkad Veeramani, 2002. "Intra-industry trade of India: Trends and country-specific factors," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(3), pages 509-533, September.
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    Cited by:

    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.
    2. Annette Spellerberg & Denis Huschka & Roland Habich, 2006. "Is the Regional Perspective Useful?: Rural and Urban Quality of Life ; an Assessment," Discussion Papers of DIW Berlin 650, DIW Berlin, German Institute for Economic Research.

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    More about this item

    Keywords

    Intra-industry trade; vertical differentiation; panel data;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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