Özet:

The main aim of this study is to analyze the structure of Turkey’s foreign trade by using IIT theory which increasing its importance permanently. IIT levels between Turkey and European Union (EU), extra-EU and the World have been calculated by using 3 and 4 digit level of SITC data and GL indices. It can be asserted that Tur-key’s foreign trade structure doesn’t show the characters of IIT in the basis of scale economies and specialization as Turkey’s IIT is approximately 40% of its total trade. The study demonstrates that comparative advantages are the main determinant of Turkey’s foreign trade patterns between 1989 and 2005. Hence, the main result of study is that Turkey and its trading partners are supplementary of each other rather than competitors. In order to become a more global, competitive and stronger market player; Turkey needs to increase its IIT levels. In this way the transfer of new technology and transformation of economic structure will be easy. When scale economies and product differentiation become relatively important, IIT levels will increase. With the additional gains from trade which increased IIT levels offer, Turkey’s economic development and international competitiveness power will rise.

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