An empirical assessment of intra-industry trade potential: evidence from the food industry in Turkey


Sönmez H.

Scientific Perspectives of Economics and Finance, KARABULUT Şahin, Editör, Ekin Yayınevi, Bursa, ss.43-57, 2023

  • Yayın Türü: Kitapta Bölüm / Mesleki Kitap
  • Basım Tarihi: 2023
  • Yayınevi: Ekin Yayınevi
  • Basıldığı Şehir: Bursa
  • Sayfa Sayıları: ss.43-57
  • Editörler: KARABULUT Şahin, Editör
  • Dokuz Eylül Üniversitesi Adresli: Evet

Özet

The main objective of this study is to investigate the intra-industry trade (IIT) structure of the food industry in Turkey. The data from the external trade statistics database of the Turkish Statistical Institute has been utilized according to the STIC Rev. 4 classification in study. The Grubel-Lloyd index, which is based on a static analysis approach, is employed to analyse the IIT ratio. According to the findings obtained from the study the IIT ratio for the “live animals and food products” sector has been determined to be an average of 0.71. This finding indicates a high level of intra-industry trade in the food industry. Furthermore, significant differences have been observed in the IIT ratios when the food industry has been evaluated at the sub-sector level. Four food sub-sectors have demonstrated IIT ratio above 0.5, indicating a high level of intra-industry trade, while nine sub-sectors have revealed an IIT ratio below 0.5, indicating a low level of intra-industry trade. The sectors of “cereals and cereal preparations”, “fixed vegetable fats and oils”, “coffee, tea, cocoa, spices and manufactures thereof” and “miscellaneous edible products and preparations” have a high intensity of intra-industry trade, engaging in both imports and exports. On the other hand, nine food sectors have denoted low IIT ratios. Turkey is an importing country in four of these sectors with a low IIT ratio, while it is an exporting country in five of them. The sectors of  “live animals”, “feeding stuff for animals”, “animal oils and fats” and “processed animal or vegetable oils, etc.” have an import-oriented trade structure. In contrast, the sectors of “meat and meat preparations”, “dairy products and bird eggs”, “fish, crustaceans, molluscs and aquatic invertebrates and preparations thereof”, “fruits and vegetables” and “sugar, sugar preparations and honey” have demonstrated an export-oriented trade structure. In conjunction with this the lowest IIT ratio in the sub-sector of food industry  is “live animals” sector with an average of 0.17, while the highest IIT ratio in the sub-sector of food industry is the “coffee, tea, cocoa, spices and manufactures thereof ” sector with an average of 0.91. In order to enhance the competitiveness of the food industry in Turkey, it is recommended to focus on technology-intensive and high-value-added products that provide cost advantages and economies of scale, establish food product brands capable of global competition, and priority to investment incentives for research and development (R&D) and innovation activities.