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Export Diversification And Competitiveness: Intensive And Extensive Margins Of Turkey

Author

Listed:
  • Seda EKMEN

    (Yildirim Beyazit University)

  • Güzin ERLAT

    (METU)

Abstract

Export diversification, which can be attained by changing the share of existing commodities (“intensive margin”) and including new commodities in the export portfolio (“extensive margin”), is needed to improve international competitiveness. In this study, we examine the significance of Turkey’s intensive and extensive margins in the EU-15 market. Using SITC (Rev. 3) five-digit data from 1996 to 2006, we determine the extent to which the increase in Turkey’s share in the EU-15 market results from a rise in existing exports or an increase in product varieties. We compare Turkey with its main non-EU-15 competitors in this market by applying the approaches developed by Feenstra and Kee (2007) and Amiti and Freund (2008). According to our analysis, for all competitors in the EU-15 market, the growth of exports has arisen primarily from the intensive margin, rather than the extensive one. Although a far greater portion of export growth is due to the intensive margin, rather than the extensive margin, Turkey has important opportunities to improve its export growth and competitiveness in the EU-15 market by increasing the production and exports of new products especially in research-intensive sectors.

Suggested Citation

  • Seda EKMEN & Güzin ERLAT, 2013. "Export Diversification And Competitiveness: Intensive And Extensive Margins Of Turkey," Ekonomik Yaklasim, Ekonomik Yaklasim Association, vol. 24(88), pages 35-64.
    • Handle: RePEc:eyd:eyjrnl:v:24:y:2013:i:88:p:35-64
    DOI: 10.5455/ey.35201
    Note: [Turkish Title] İhracatta Çeşitlenme: Türkiye’nin Yoğun ve Yaygın Marjları. [Turkish Abstract] Uluslararası piyasalarda rekabet edebilirliği sağlamak için ülkelerin ihracatta çeşitlenmeye gitmesi gerekmektedir. İhracatta çeşitlenme hâlihazırda ihraç edilen malların paylarının artırılması (“yoğun marj”) ve yeni mallar ihraç edilmesi (“yaygın marj”) ile sağlanabilir. Bu çalışmada Türkiye’nin AB-15 piyasasına yaptığı ihracattaki yoğun ve yaygın marjları 1996-2006 yılları için sayım yöntemi, Feenstra ve Kee (2007) ile Amiti ve Freund (2008) tarafından geliştirilen yöntemlerle incelenmiştir. Bu yöntemler her bir teknolojik sınıf için ayrı ayrı ele alınmış ve ayrıca Türkiye’nin konumu AB-15 piyasasına ihracat yapan en önemli 30 AB-15 dışı ülke ile de kıyaslanmıştır. Çalışmamız, Türkiye’nin yeni malların üretimi ve ihracatını arttırarak AB-15 piyasasında AB-15 dışı rakiplerine karşı rekabet gücünü arttırabilmesi için önemli fırsatları olduğunu ortaya çıkarmıştır. [Turkish Keywords] Türkiye, Avrupa Birliği, ihracat rekabet gücü, yoğun marj, yaygın marj.
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    Keywords

    Turkey; European Union; export competitiveness; intensive margin; extensive margin.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F19 - International Economics - - Trade - - - Other

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