Abstract:

In this study, Turkey’s foreign trade structure and competitiveness against EU(28) is analyzed for the postCustoms Union period (1996–2012) in the context of different technology levels of manufacturing industry. As an analysis method, Export-Import Technology Composition Index, Concentration Ratio, Revealed Comparative Advantages Index, IntraIndustry Trade Index, Marginal Intra-Industry Trade Index and Sectoral Bilateral Trade Concentration Index techniques are applied in the study. The results of the mentioned analysis are as follows: (i) In manufacturing industry, weighted average of Turkey’s export to the EU corresponds to Medium-Low Technology level, whereas weighted average of Turkey’s import from the EU corresponds to Medium-High Technology level. (ii) Turkey’s foreign trade with the EU is limited to few countries. (iii) It was seen that Turkey doesn’t have competitiveness towards EU in the aggregate levels of High Technology Industries and Medium-High Technology Industries during the entire period of the study. Despite the fact that competitiveness of Turkey towards EU is high in the aggregate level of Low Technology Industries and at about minimum acceptable value in the aggregate level of Medium-Low Technology Industries. (iv) Intra Industry Trade between Turkey and EU has increased in almost all industry groups except Low Technology Industry group. (v) Marginal trade between Turkey and EU in manufacturing industry has turned out to be Intra-Industrial structure from Inter-Industrial structure since 2002. (vi) Turkey is concentrated on EU in exporting of High, Medium-High and Low Technology Industries’ aggregate levels and in importing of Medium-High Technology and partially High Technology Industries aggregate levels

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