Export competitiveness of Türkiye's agricultural machinery and equipment sector

Year 2023, , 703 - 717, 30.09.2023

Zeynep Aktaş Çimen , Can Ertekin

https://doi.org/10.31015/jaefs.2023.3.24

Abstract

The aim of the study is to determine the competitiveness of Turkey’s agricultural machinery and equipment sector. Balassa’s Revealed Comparative Advantage (RCA) approach was used in the period 2002-2021 by using International Trade Center database. Balassa’s Revealed Comparative Advantage RCA2 Index for 39 agricultural machinery and equipment product groups (their sub-product groups of 69, 82, 84, 87) related to Harmonized System 6-digit product classification, Vollrath’s Relative Export Advantage-RXA, Net Export Index-NEI, and Export-Import Rate Index-EIRI indices were calculated. According to the results, while Turkey has a competitive advantage in 13 of the agricultural machinery and equipment product group exports, it has a competitive disadvantage in the other 26 product groups.

Keywords

Agricultural Machinery and Equipment, Revealed Comparative Advantages, Vollrath Index, Net Export Index, Export-Import Rate Index.

References

• Aktas Cimen, Z. & Kutlu D. (2023). Country Based Concentration (Diversification) Analysis in Turkey’s Foreign Trade: Shanghai Cooperation Organization. Eskişehir Osmangazi University Journal of Economics and Administrative Sciences, 18, 210-228 (in Turkish). https://doi.org/10.17153/oguiibf.1258420
• Akyuz, K.C., Yildirim, I., Ersen, N., Akyuz, I., & Memis, D. (2020). Competitiveness of forest products industry sector in Turkey: Revealed comparative advantage index. Drewn, 63, 205. https://doi.org/10.12841/wood.1644-3985.333.09
• Altay, B. & Gürpınar, K. (2008). Revealed Comparative Advantage and Some Competitiveness Indices: An Application on Turkish Furniture Sector. Afyon Kocatepe University Journal of the Faculty of Economics and Administrative Sciences, 10, 257-274 (in Turkish).
• Balassa, B. & Noland, M. (1989). Revealed Comparative Advantage in Japan and the United States. Journal of International Economic Integration, 4, 8-22. Retrieved from: https://www.jstor.org/stable/23000034
• Balassa, B. (1965). Trade Liberalization and Revealed Comparative Advantage. The Manchester School of Economic and Social Studies, 33, 99-123. DOI: https://doi.org/10.1111/j.1467-9957.1965.tb00050.x
• Berk, A. & Erdem, T. (2019). Revealed Comparative Advantage and Competitiveness of Turkey Agricultural Machinery Sector. 1st International Conference of Research on Agricultural and Food Technologies, 3-5 October, Adana, Turkey (in Turkish).
• Bojnec, S. & Ferto, I. (2006). Does comparative advantages in agro-food trade matter for multifunctional rural development: the case of Hungary and Slovenia. Journal of Central European Agriculture, 7, 583-586.
• Bozduman, T. & Erkan, B. (2019). Analysis of Foreign Trade Performance in the Textile and Apparel Sector of Shanghai Cooperation Organization Members. May 1st Social Policies and Scientific Research Congress Book, 1-2 Mai, Ankara, Turkey (in Turkish).
• Bowen, H.P. (1983). On the theoretical interpretation of indices of trade intensity and revealed comparative advantage. Weltwirtschaftliches Archiv, 119, 464–472. Retrieved from: https://link.springer.com/article/10.1007/BF02706520
• Cestepe, H. & Tuncel, A. (2018). International Competitiveness Analysis of the Turkish Iron and Steel Industry. Turkish Studies, 13, 113-129 (in Turkish). http://dx.doi.org/10.7827/TurkishStudies
• Erdem, T. (2020). Competitiveness of dried sector: A case study of World and Turkey. Agricultural Economics-Czech, 66, 365-372. https://doi.org/10.17221/98/2020-AGRICECON
• Erkan, B. & Batbayli, S. (2017). Comparative Advantages of Black Sea Economic Cooperation Organization (BSEC) Member Countries in Global Competitive Markets. Marmara University Journal of Political Sciences, 31-49 (in Turkish).
• Erkan, B. (2013). Determination of International Competitiveness in Exports of Turkey’s Textile and Apparel Industry. Anadolu University Journal of Social Sciences, 13, 93-110 (in Turkish).
• Esterhuizen, D. & Van Rooyen, C.J. (2001). Creating a Chain Reaction: The Competitiveness of the Agricultural Input Industry in South Africa (No. 1737-2016-140379).
• Fronberg, K. & Hartmann, M. (1997). Comparing Measures of Competitiveness. Institute of Agricultural Development in Central and Eastern Europe. Discussion Paper No: 2.
• Gnidchenko, A.A. & Salnikov, V.A. (2021). Trade Intensity, Net Trade, and Revealed Comparative Advantage. HSE Working papers WP BRP 244/EC/2021, National Research University Higher School of Economics.
• Gnidchenko, A.A. & Salnikov, V.A. (2015). Net comparative advantage index: overcoming the drawbacks of the existing indices. Basic Research Program Working Papers Series: Economics WP BRP 119/EC/2015, National Research University Higher School of Economics.
• Hambalkova, M. (2006). The factors of competitiveness and the quantification of their impact on the export efficiency of grape and wine in the Slovak Republic. Agricultural Economics, Czech Academy of Agricultural Sciences, 52, 389-394.
• Hinloopen, J. & Van Marrewijk, C. (2001). On the Empirical Distribution of the Balassa Index. Weltwirtschaftliches Archiv, 137, 1-35.
• TB. (2023). Tarım Alet ve Makinaları Sektör Notu. Retrieved in February, 14, 2023 from https://ticaret.gov.tr/data/5b87000813b8761450e18d7b/Tar%C4%B1m%20Alet%20ve%20Makinalar%C4%B1%20Sekt%C3%B6r%20Raporu%202023.pdf. (Access Date: 14.02.2023).
• Statistics. (2023). Glossary. Retrieved in May, 2, 2023 from https://www.statistics.com/glossary/trimmed-mean/. (Access Date: 02.05.2023).
• International Monetary Fund. (2020). Global Competitiveness Report Special Edition 2020: How Countries are Performing on the Road to Recovery. https://www.weforum.org/reports/the-global-competitiveness-report-2020/in-full/executive-summary-70fef507ea. (Access Date: 13.04.2023).
• Jagdambe, S. (2019). Consistency Test of Revealed Comparative Advantage Index: Evidence from India’s Agricultural Export. Foreign Trade Review, 54, 16-28. https://doi.org/10.1177/0015732518810838
• Kilicarslan, Z. (2019). Disclosed Comparative Advantage Analysis of Foreign Direct Investment Inflows. IBAD Journal of Social Sciences, October Special Issue, 326-339 (in Turkish). https://doi.org/10.21733/ibad.610440
• Kosekahyaoglu, L. & Ozdamar, G. (2005). A Comparative Analysis on Sectoral Competitiveness and Foreign Trade Structure of Turkey, Czech Republic, Hungary, Poland and Estonia. socioeconomics, 2, 73-102 (in Turkish).
• Kucukkiremitci, O. (2006). Sanayi Sektörünün Dış Ticaret Performansının Rekabet Gücüne Göre Değerlendirilmesi (1995-2005 Dönemi). Presentation at the T.C. İnönü Üniversitesi İ.İ.B.F. Ulusal Bağımsızlık İçin Türkiye İktisat Politikaları Kurultayı, Malatya, Haziran, 13-16.
• Liesner, H.H. (1958). The European Common Market and British Industry. Economic Journal, 68, 302-316. https://doi.org/10.2307/2227597
• Long, Y. (2021). Export Competitiveness of Agricultural Products and Agricultural Sustainability in China. Regional Sustainability, 2, 203-210. https://doi.org/10.1016/j.regsus.2021.09.001
• Magezi, H.E. & Okan, T. (2019). Competitiveness Analysis of Forest Products Trade between Turkey and European Union Countries. Turkish Journal of Forestry, 20, 366-372. https://doi.org/10.18182/tjf.630250
• Mikic, M. (2005). Commonly used trade indicators: a note. ARTNeT Capacity Building Workshop on Trade Research. UNESCAP, Vol. 1.
• Mykhnenko, V. (2005). What Type of Capitalism in Eastern Europe? Institutional Structures, Revealed Comparative Advantages, and Performance of Poland and Ukraine. Centre for Public Policy for Regions (CPPR) Discussion Paper, No. 6, 1-43.
• Ortikov, A., Smutka, L. & Benesova, I. (2019). Competitiveness of Uzbek Agrarian Foreign Trade-Different Regional Trade Blocs and The Most Significant Trade Partners. Journal of International Studies, 12, 177-194. https://doi.org/10.14254/2071-8330.2019/12-4/12
• Ozbas, H. & Yildirim, O. (2022). Revealed Comparative Advantages in Turkey’s Foreign Trade (2001-2019). https://doi.org/10.15659/3.sektor-sosyal-ekonomi.22.07.1836
• Pakravan, M.R. & Kalashami, M.K. (2011). Future Prospects of Iran, U.S and Turkey’s Pistachio Exports. International Journal of Agricultural Management & Development (IJAMAD), 1, 181-188. https://doi.org/10.22004/ag.econ.143646
• Reddy, S. (2018). The Growing BRICS Economies: An INET Series. https://www.ineteconomics.org/perspectives/blog/the-growing-brics-economies-an-inet-series. (Access Date: 11.04.2023).
• Saptana, G.E., Perwita, A.D., Sukmaya, S.G., Darwis, V. & Ariningsih, E. (2021). The Competitiveness Analysis of Shallot in Indonesia: A Policy Analysis Matrix. PLoS ONE, 16, e0256832. https://doi.org/10.1371/journal.pone.0256832
• Sarica, D. (2016). Competitiveness of Turkish Agricultural Sector. XII. National Agricultural Economics Congress, 1343-1350 (in Turkish).
• Saricoban, K. & Kosekahyaoglu, L. (2017a). A Literature Review on Indices Used to Measure Competitiveness with Post-Trade Data. The Journal of Academic Social Science, 5, 424-444 (in Turkish). http://dx.doi.org/10.16992/ASOS.12439
• Saricoban, K. & Kosekahyaoglu, L. (2017b). Measuring Turkey’s Export Competitiveness in Agricultural Products: An Analysis on 1996-2015 Period. ASSAM International Refereed Journal, 4, 78-96 (in Turkish).
• Saricoban, K. & Kosekahyaoglu, L. & Erkan, B. (2017). Determining Turkey’s Level of Competitiveness in Textile Exports: An Analysis for the Period 1996-2015. Section Academy Journal, 8, 186-203 (in Turkish).
• Saricoban, K. & Yalcin, M. (2020). Determination of the Export Competitiveness of Turkey’s Carpet Industry and a Comparison with the Countries That Have a Voice in Carpet Export. TMMOB Chamber of Textile Engineers Textile and Engineers, 27, 98-110 (in Turkish). https://doi.org/10.7216/1300759920202711806
• Startiene, G. & Remeikiene, R. (2014). Evaluation of revealed comparative advantage of lithuanian ındustry in global markets. Procedia-Social and Behavioral Sciences, 110, 428-438. https://doi.org/10.1016/j.sbspro.2013.12.887
• Torayeh, N.M. (2013). The Competıtıveness of the Egyptian Agricultural Export in the EU Market; Should Egypt Diversify Its Trade Pattern? Applied Econometrics and International Development, 13.
• Trade Map. (2023). https://www.trademap.org/Country_SelProduct_TS.aspx?nvpm=1%7c%7c%7c%7c%7cTOTAL%7c%7c%7c2%7c1%7c1%7c2%7c2%7c1%7c2%7c1%7c1%7c1
• Vollrath, T.L. (1991). A Theoretical Evaluation of Alternative Trade Intensity Measures of Revealed Comparative Advantage. Weltwirtschaftliches Archiv, 127, 265-280. https://doi.org/10.1007/BF02707986
• Zhang, D. & Sun, Z. (2022). Comparative Advantage of Agricultural Trade in Countries along the Belt and Road and China and Its Dynamic Evolution Characteristics. Foods, 11, 3401. https://doi.org/10.3390/foods11213401TS.aspx?nvpm=1%7c%7c%7c%7c%7cTOTAL%7c%7c%7c2%7c1%7c1%7c2%7c2%7c1%7c2%7c1%7c1%7c1. (Access Date: 13.04.2023).