The import dependency of intermediate input and final demand in the food industry in Turkey: sectoral forward and backward linkage effects


Sönmez H.

in: International Studies in Economics and Administrative Sciences, Mete Mustafa,Topbaş Aytaç,Mermertaş Funda, Editor, Serüven Yayınevi, Ankara, pp.133-150, 2023

  • Publication Type: Book Chapter / Chapter Vocational Book
  • Publication Date: 2023
  • Publisher: Serüven Yayınevi
  • City: Ankara
  • Page Numbers: pp.133-150
  • Editors: Mete Mustafa,Topbaş Aytaç,Mermertaş Funda, Editor
  • Dokuz Eylül University Affiliated: Yes

Abstract

The international trade liberalization, rapid integration of national economies, and technological advancements in the logistics chain have resulted in significant changes in the structure of sectoral production. Also, the demand for cheaper and higher-quality imported inputs has increased in the markets with the support of economic policies promoting free trade. There has been a substantial transformation in the requirement for foreign capital and intermediate goods in the food industry in Turkey. Therefore, it has been significant to examined the dependency on imports in the production structure of the food industry and analyze the effectiveness of industrialization policies. The purpose of this study is to investigate the use of imported intermediate inputs and the degree of dependence on imports in the food industry in Turkey. The study utilized the input-output table published by the World Input-Output Database in 2016, which represented the most recent data available. The dependency on imports has been examined by analyzing the linkage effects through the computation of the Leontief inverse import matrix method. According to the findings of the study, the dependency on imports for intermediate inputs in the food sector has been calculated as 11%. Furthermore, it has been determined that when the final demand in the food sector increases by 1 unit, the total amount of required imported inputs increases by 0.1970 units.  Moreover, it has been found that when the final demand of all sectors in Turkey increases by one unit, the total quantity of products that need to be imported from foreign food sectors increases by 0.1330 units. The share of the top five sectors, which have the highest total forward linkage effects in imports, has been computed as 55% of the total imported food. The highest import intensity in the food sector are agricultural products, chemical products, and petroleum products. It is believed that priority should be given to sectors in the food industry that have a significant level of import input intensity, and it is thought that import dependency in the food sector will be reduced through increased investments within the framework of the developed policies.