Türkiye’s Role in Global Value Chains: A Value-Added Analysis of Key Industrial Sectors (2000–2020)
Abstract
This paper evaluates Türkiye’s involvement in global value chains (GVCs) by examining foreign value-added (FVA) and domestic value-added (DVA) shares embodied in gross exports over the period 2000–2020, using Trade in Value Added (TiVA) indicators derived from the OECD Inter-Country Input–Output tables, 2023 edition. The analysis adopts a data-driven sectoral focus by ranking the sectors according to their time average foreign value-added shares over the sample period and selecting those with the highest values: coke and refined petroleum products; motor vehicles, trailers, and semi-trailers; electrical equipment; computer, electronic, and optical products; basic metals; and chemicals and chemical products. For these sectors, the paper examines corresponding domestic value-added shares and compares Türkiye’s performance with OECD and G20 TiVA regional aggregates, providing a relevant benchmark given Türkiye’s position between advanced and emerging economies. The findings show that Türkiye consistently exhibits higher foreign value-added shares and lower domestic value-added shares than the OECD and G20 TiVA regional aggregates across the selected sectors, indicating a strong reliance on imported intermediate inputs in export production. These results suggest that Türkiye’s participation in global value chains, in these manufacturing sectors, is associated with relatively high import dependence and lower domestic value retention. From a policy perspective, the results highlight the potential relevance of strategies to strengthen domestic production capabilities and enhance domestic value retention in sectors with high foreign-input dependence. Policies that support firm-level capability development and domestic supplier participation may contribute to higher domestic value-added shares over time, while maintaining integration into international production networks.
Keywords
International Trade, Global Value Chains, Value-Added, TiVA Data Set, Import Dependency
References
- Acemoğlu, D. (2018). To go forward, Turkey must look back. Bloomberg, To Go Forward, Turkey Must Look Back - Bloomberg
- Aromi, J. D. (2021). Large current account deficits and neglected vulnerabilities. IMF Economic Review, 69, 597–623. https://doi.org/10.1057/s41308-021-00137-5
- Aichele, R., & Heiland, I. (2018). Where is the value added? Trade liberalization and production networks. Journal of International Economics. 115, 130-144. https://doi.org/10.1016/j.jinteco.2018.09.002
- Amador, J., & Cabral, S. (2017). Networks of value‐added trade. The World Economy, 40(7), 1291-1313. https://doi.org/10.1111/twec.12469
- Athukorala, P. C., & Patunru, A. A. (2022). Domestic value added, exports and employment: an input–output analysis of Indonesian manufacturing. Bulletin of Indonesian Economic Studies, 59(3), 365–390. https://doi.org/10.1080/00074918.2022.2134554
- Bas, T., Kara, F. & Alola, A.A. The environmental aspects of agriculture, merchandize, share, and export value-added calibrations in Turkey. Environ Sci Pollut Res 28, 62677–62689 (2021). https://doi.org/10.1007/s11356-021-15171-z
- Blanchard, E. J., Bown, C. P., & Johnson, R. C. (2025). Global value chains and trade policy. Review of Economic Studies, rdaf017. https://doi.org/10.1093/restud/rdaf017
- Çelebi Boz, F., Gültekin, Ö. F., & Bayramoğlu, T. (2019). BRICS ve MIST ülkelerinde Ar-Ge harcamaları ile yüksek teknolojili ürün ihracatı arasındaki ilişki üzerine bir araştırma. İnsan ve Toplum Bilimleri Araştırmaları Dergisi, 8(2), 1111–1124. https://doi.org/10.15869/itobiad.533402
- Devadas, S. & Loayza, N. (2018). When is a current account deficit bad?. World Bank Research and Policy Briefs, 130415. ssrn-3263512.pdf
- Erkan, B. (2017). Türkiye’nin İhracatında Uzmanlaşma ve Rekabet Edebilirlik Düzeyi: Avrupa Birliği Piyasası-Küresel Piyasalar Karşılaştırmalı Analizi. İnsan ve Toplum Bilimleri Araştırmaları Dergisi, 6(6), 68-88. https://doi.org/10.15869/itobiad.356234