Research Information System
in: Scientific Perspectives of Economics and Finance, KARABULUT Şahin, Editor, Ekin Yayınevi, Bursa, pp.43-57, 2023
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.