Abstract:

To determine sectors with high competitiveness, the described comparative superiority (RCA) index, also known as the Balassa index, is used.  This index is developed by Loewendahl and Barklie as a method to identify the target sectors to draw foreign investments directly or to analyze the comparative superiority of positions for foreign investments directly. This study aims to determine the comparative advantages of Turkey and OECD countries in foreign direct investments. For this purpose, the index was developed by Loewendahl and Barklie (2018) was used. The sectors that Turkey has a comparative superiority in foreign direct investments have been determined. The RCA-FDI index values were calculated separately for the years 2013 and 2017 and the changes in the indicated comparative advantages of Turkey in foreign direct investments were revealed. The index is also calculated in the key economic activities areas for OECD countries. According to the index values calculated for Turkey, strong comparative superiority in the "agriculture, forestry and fishing" sectors within the main areas of activity, weak comparative superiority in the "fishing" sector, strong comparative superiority in the "electricity, gas, steam and air conditioning supply", weak comparative superiority in the "water supply, sanitation, waste management and improvement activities", weak comparative superiority in the "building" sector. However, in the “service” sector there is no competitive advantage. The sectors with Turkey’s strongest comparative superiority are “bibliothèques, archives, museums and other cultural activities” and “black transportation and pipeline transportation”. The sector with the highest number of countries with strong comparative superiority in the OECD countries is "agriculture, forestry and fishing". The sector with the highest number of countries with comparative disadvantages is "mining and mining". In the "production" sector, no country has a strong and medium comparative superiority.

Abstract:

The disclosed comparative advantage (RCA) index, also known as the Balassa index, is used to identify sectors that are highly competitive. Based on this index, RCA index Loewendahl and Barklie (2018) developed the comparative advantage in direct foreign investment as a method for identifying target sectors to attract foreign direct investment or analyzing the comparative advantage of positions for foreign direct investment. In this study, it is aimed sectorally to determine revealed comparative advantages in foreign direct investments in Turkey and in OECD countries. For this purpose, the index developed by Loewendahl and Barklie (2018) is used. Sectors where Turkey has revealed comparative advantages in foreign direct investment have been identified. RCAFD index values are calculated separately for 2013 and 2017, foreign direct investment in Turkey and explained the changes in comparative advantage are explained. y. In addition, index was calculated for the main economic activity areas for OECD countries. According to the index values calculated for Turkey, within the main fields of activity, it has emerged strong comparative advantage in “agriculture, forestry and fisheries”, weak comparative advantage in “manufacturing”, strong comparative advantage in “supply of electricity, gas, steam and air conditioning”, weak comparative advantage in “water supply, sewage, waste management and remediation activities”, weak comparative advantage in “construction”. However, there is no competitive advantage in the “services sector". Turkey's strongest sectors that they have comparative advantages are “libraries, archives, museums and other cultural activities” and “land transport and pipelines to transport”. In OECD countries, “agriculture, forestry and fisheries” is the sector with the highest number of countries with strong comparative advantage. The sector with the highest number of countries having comparative disadvantages is “mining and quarrying". In the “manufacturing” sector, no country has a strong and medium comparative advantage. 

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