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The Effect of Economic Reforms of 1980s and of the Customs Union 1996 upon the Turkish Intra-Industry Trade

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Author Info
Sule Akkoyunlu
Konstantin A. Kholodilin
Boriss Siliverstovs

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Abstract

In this paper we analyze the impact of the economic reforms implemented in 1980s and of the Custom Union Agreement of 1996 on the intra-industry trade in Turkey. Using the panel data for 15 trading partners of Turkey and the sample period 1970-2005, we record the positive impact of both reforms with the former reforms exercising stronger influence on the intra-industry trade measured either by the Grubel-Lloyd or the Brülhart's indices. We also control for other factors like economic size, difference in income per capita and in economic size between Turkey and its trading partners in our empirical regressions.

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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 649.

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Length: 22 p.
Date of creation: 2006
Date of revision:
Handle: RePEc:diw:diwwpp:dp649

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Related research
Keywords: Intra-industry trade Customs Union Agreement panel data estimation.

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade

This paper has been announced in the following NEP Reports:

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bilin Neyapti & Fatma Taskin & Murat Ungor, 2004. "Has European Customs Union Agrement Really Affected Turkey's Trade?," Departmental Working Papers 0404, Bilkent University, Department of Economics. [Downloadable!]
  2. Güzin Erlat & Haluk Erlat, 2003. "Measuring Intra-Industry and Marginal Intra-Industry Trade : The Case for Turkey," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 39(6), pages 5-38, November. [Downloadable!] (restricted)
  3. David Greenaway & Chris R. Milner, 2006. "Recent Developments in Intra-Industry Trade: Introduction by Guest Editors," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(3), pages 425-432, October. [Downloadable!] (restricted)
  4. Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 1997. "Economic implications for Turkey of a Customs Union with the European Union," European Economic Review, Elsevier, vol. 41(3-5), pages 861-870, April. [Downloadable!] (restricted)
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  5. Kemal Turkcan, 2005. "Determinants of Intra-Industry Trade in Final Goods and Intermediate Goods between Turkey and Selected OECD Countries," Istanbul University Econometrics and Statistics e-Journal, Department of Econometrics, Faculty of Economics, Istanbul University, vol. 1(1), pages 21-40, May. [Downloadable!]
  6. Antonio Aquino, 1978. "Intra-industry trade and inter-industry specialization as concurrent sources of International Trade in manufactures," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 114(2), pages 275-296, June. [Downloadable!] (restricted)
  7. Mercenier, Jean & Yeldan, Erinc, 1997. "On Turkey's trade policy: Is a customs union with Europe enough?," European Economic Review, Elsevier, vol. 41(3-5), pages 871-880, April. [Downloadable!] (restricted)
    Other versions:
  8. Marius Brülhart, 1994. "Marginal intra-industry trade: Measurement and relevance for the pattern of industrial adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(3), pages 600-613, September. [Downloadable!] (restricted)
  9. Joaquín Oliveras & Inés Terra, 1997. "Marginal intra-industry trade index: The period and aggregation choice," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(1), pages 170-178, March. [Downloadable!] (restricted)
  10. 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. [Downloadable!]
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