Research Article

The Role of Terms of Trade in Turkey and Indonesia's Exit from the Middle Income Trap

Volume: 8 Number: 2 December 31, 2025
TR EN

The Role of Terms of Trade in Turkey and Indonesia's Exit from the Middle Income Trap

Abstract

This study comparatively examines the foreign trade terms performance of Turkey and Indonesia over the period 2003–2023 and evaluates the impact of this performance on economic development. Analyses based on indicators such as the net terms of trade (NTT), income terms of trade (ITT), and advanced pure terms of trade (APTT) show that Turkey, with its industry- and semifinished goods-focused structure, has increased its export volume; however, its dependence on imports has put downward pressure on its terms of trade. Indonesia, on the other hand, is more vulnerable to external shocks because of its commodity-oriented export composition, and its terms of trade are strongly affected by global price fluctuations. Both countries should improve their terms of trade by restructuring industrial policies and shifting toward high value-added sectors in exports to overcome the middle-income trap. The study highlights that terms of trade are a fundamental component not only of foreign trade but also of development policies.

Keywords

References

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Details

Primary Language

English

Subjects

Macroeconomics (Other), Theory of Economy

Journal Section

Research Article

Publication Date

December 31, 2025

Submission Date

September 17, 2025

Acceptance Date

October 9, 2025

Published in Issue

Year 2025 Volume: 8 Number: 2

APA
Dargınoğlu, S., & Hepaktan, C. E. (2025). The Role of Terms of Trade in Turkey and Indonesia’s Exit from the Middle Income Trap. Izmir Democracy University Social Sciences Journal, 8(2), 182-223. https://doi.org/10.61127/idusos.1786252
AMA
1.Dargınoğlu S, Hepaktan CE. The Role of Terms of Trade in Turkey and Indonesia’s Exit from the Middle Income Trap. IDUSoS. 2025;8(2):182-223. doi:10.61127/idusos.1786252
Chicago
Dargınoğlu, Sezin, and Cemal Erdem Hepaktan. 2025. “The Role of Terms of Trade in Turkey and Indonesia’s Exit from the Middle Income Trap”. Izmir Democracy University Social Sciences Journal 8 (2): 182-223. https://doi.org/10.61127/idusos.1786252.
EndNote
Dargınoğlu S, Hepaktan CE (December 1, 2025) The Role of Terms of Trade in Turkey and Indonesia’s Exit from the Middle Income Trap. Izmir Democracy University Social Sciences Journal 8 2 182–223.
IEEE
[1]S. Dargınoğlu and C. E. Hepaktan, “The Role of Terms of Trade in Turkey and Indonesia’s Exit from the Middle Income Trap”, IDUSoS, vol. 8, no. 2, pp. 182–223, Dec. 2025, doi: 10.61127/idusos.1786252.
ISNAD
Dargınoğlu, Sezin - Hepaktan, Cemal Erdem. “The Role of Terms of Trade in Turkey and Indonesia’s Exit from the Middle Income Trap”. Izmir Democracy University Social Sciences Journal 8/2 (December 1, 2025): 182-223. https://doi.org/10.61127/idusos.1786252.
JAMA
1.Dargınoğlu S, Hepaktan CE. The Role of Terms of Trade in Turkey and Indonesia’s Exit from the Middle Income Trap. IDUSoS. 2025;8:182–223.
MLA
Dargınoğlu, Sezin, and Cemal Erdem Hepaktan. “The Role of Terms of Trade in Turkey and Indonesia’s Exit from the Middle Income Trap”. Izmir Democracy University Social Sciences Journal, vol. 8, no. 2, Dec. 2025, pp. 182-23, doi:10.61127/idusos.1786252.
Vancouver
1.Sezin Dargınoğlu, Cemal Erdem Hepaktan. The Role of Terms of Trade in Turkey and Indonesia’s Exit from the Middle Income Trap. IDUSoS. 2025 Dec. 1;8(2):182-223. doi:10.61127/idusos.1786252