Turkey's sectoral exports: A competitiveness approach

In this study, a sectoral export determination equation of Turkey is estimated using a very detailed panel data of 1,029 sectors in SITC Rev 3 four digit level for the period 1995–2015. In addition to standard export determination variables; the variables showing technology and sophistication level of the export products of Turkey were included among the independent variables; using both some traditional classification measures (Lall (2000), Oxford Development Studies, 2, 100–109) and a new measure developed by Hidalgo et al., (2009), “The Building Blocks of Economic Complexity.” Proceedings of the National Academy of Sciences 106(26): 10570–10575. Moreover, also some indicators of competitiveness in world markets were included among independent variables. Method of estimation is augmented mean group, which takes into consideration cross sectional dependencies and parameter heterogeneities. Results of the regression suggest that product quality and design are becoming more important and price competition becomes less important in gaining competitive edge in world markets for Turkey. There is a transition of Turkey's exports towards medium technology products.