Export similarity index as a barometer of Turkey's agricultural machinery and equipment export competitiveness

Year 2025, Volume: 9 Issue: 1, 57 - 67

Zeynep Aktaş Çimen , Can Ertekin

https://doi.org/10.31015/2025.1.8

Abstract

This is study aims to evaluate Turkey's agricultural machinery and equipment export performance with the aid of the Export Similarity Index (ESI) from a relative and holistic perspective with the leading countries in the global export market (China, Germany, United States of America [USA], Japan, Italy). For this purpose, export data for 2002-2021 were extracted from the Trade Map database. According to the Harmonized System (HS) as a 6-digit code system, the ESI value was calculated for 39 agricultural machinery and equipment product groups (sub-product groups 69, 82, 84, 87). The results of the study showed that, the ESI values regarding Turkey's agricultural machinery and equipment exports with China, Germany, the USA, and Italy increased in this mentioned period. These increase in ESI values indicated that, the countries export similar products and therefore the competition between them has increased. However, the decreases in Turkey's ESI values compared to Japan mean that, the similarity in the products they export and the competition between the two countries have decreased. Turkey's ESI value of "67.19" with Italy in 2021 shows that ,Turkey is in high competition with Italy in agricultural machinery and equipment exports. In addition, Turkey's ESI value of "26.46" with China in 2002 increased to "46.23" in 2021. This increase in the ESI value shows that, Turkey and China are increasingly exporting similar products and that competition between the two countries is increasing. China's performance is a serious threat to Turkey. To strengthen Turkey's agricultural machinery and equipment export performance, comprehensive export strategies that include both companies in the sector and state-led efforts are needed.

Keywords

Export, Competitiveness, Export Similarity Index, Agricultural Machinery and Equipment Sector

References

• Ajitabh A., Momaya K. (2004). Competitiveness of Firms: Review of Theory, Frameworks and Models. Singapore Management Review, 26(1), 45-61. https://ssrn.com/abstract=2146487
• Aktan C.C., Vural I.Y. (2004). Rekabet Gücü ve Rekabet Stratejileri. Türkiye İşveren Sendikaları Konfederasyonu Rekabet Dizisi 3.
• Aktas Cimen Z., Ertekin C. (2023). Export competitiveness of Türkiye's agricultural machinery and equipment sector. International Journal of Agriculture, Environment and Food Sciences, 7, 703-717. https://doi.org/10.31015/jaefs.2023.3.24
• Aktas Cimen Z., Kosekahyaoglu L. (2023). Country-Based Export Concentration of Türkiye and BRICS and Export Similarity to the EU Market (2001-2021). Fiscaoeconomia, 7, 2177-2198. https://doi.org/10.25295/fsecon.1288028
• Banerjee S., Punekar R.M. (2020). A sustainability-oriented design approach for agricultural machinery and its associated service ecosystem development. Journal of Cleaner Production, 264, 121642. https://doi.org/10.1016/j.jclepro.2020.121642
• Bayoumi T. (2024, 20 Aralık). The Postwar Economic Achievement, June 1995. https://www.elibrary.imf.org/downloadpdf/journals/022/0032/002/article-A013-en.xml
• Buckley J.P., Pass C.L., Prescott K. (1988). Measures of International Competitiveness: A Critical Survey. Journal of Marketing Management, 4, 175-200.
• Celik H.K., Rennie A.E.W., Akinci I (2020). A Potential Research Area Under Shadow In Engineering: Agricultural Machinery Design and Manufacturing. ISPEC Journal of Agr. Sciences, 4.
• Centre for Sustainable Agricultural Mechanization (2023). Agricultural Machinery Industryin, 10 Mai 2023. https://un-csam.org/sites/default/files/2023-11/2.%20PPT_Türkiye.pdf
• Falciola J., Jansen M., Rollo V. (2020). Defining firm competitiveness: A multidimensional framework. World Development, 129. https://doi.org/10.1016/j.worlddev.2019.104857
• Finger J.M., Kreinin M.E. (1979). A Measure of “Export Similarity” and Its Possıble Uses. The Economic Journal, 89, 905-912.
• GII Global Information (2024, 26 Aralık). Agricultural Machinery & Equipment Market by Type (Harvesting Machinery, Haying & Forage Machinery, Irrigation Machinery), Level of Automation (Automatic, Manual, Semiautomatic), Distribution Channel, Application - Global Forecast 2025-2030, Ekim 2024. https://www.giiresearch.com/report/ires1602479-agricultural-machinery-equipment-market-by-type.html?
• Hartanto R., Arkeman Y., Hermadi I., Sjaf S., Kleinke M. (2019, October). Intelligent unmanned aerial vehicle for agriculture and agroindustry. In IOP Conference Series: Earth and Environmental Science, 335, p. 012001). IOP Publishing. https://doi.org/10.1088/1755-1315/335/1/012001
• IndustryARC. (2024a, 26 Aralık). Agricultural Machinery Market - Forecast(2024 - 2030). https://www.industryarc.com/Report/18653/agricultural-machinery-market.html
• Jagadeesh M.S.; Jahnavi A.P.; Vinay H.T.; Abhishek G.J.; Abhishek S.S.; Chikkalaki A.S. (2024). Export Competitiveness of Indian Coffee: Analysing Trade Potential in the Global Market. J. Sci. Res. Rep., 30, 51-61.
• Li E., Chen Y., Hu G., Lu M. (2022). Competition between Export Cities in China: Evolution and Influencing Factors. Land, 11(2), 1-18. https://doi.org/10.3390/land11020201
• Liu C., Xu J., Zhang H. (2020). Competitiveness or Complementarity? A Dynamic Network Analysis of International Agri-Trade along the Belt and Road. Appl. Spatial Analysis, 13, 349-374. https://doi.org/10.1007/s12061-019-09307-5
• Mikic M., Gilbert J. (2009). Trade Statistics in Policymaking-A Handbook of Commonly Used Trade Indices and Indicators. United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). https://repository.unescap.org/bitstream/handle/20.500.12870/140/ESCAP-2009-MN-Trade-statistic-in-policy-making.pdf?sequence=5&isAllowed=y
• Nguyen T.N.A., Pham T.H.H., Vallee T. (2017). Similarity in trade structure: Evidence from ASEAN + 3. The Journal of International Trade & Economic Development, 26, 1000-1024. https://doi.org/10.1080/09638199.2017.1331372
• Özoğul G. (2018). An Overview of the World Agricultural Machinery Manufacturing Sector. Tarım Makinaları Bilimi Dergisi, 14, 23-30.
• Patel M., Singh S.D., Devi A.M., Raj A. (2024b). Chapter-15 Agricultural Machinery And Equipment. https://www.researchgate.net/publication/384459734_AGRICULTURAL_MACHINERY_AND_EQUIPMENT/link/66fcbafdb753fa724d562179/download?_tp=eyJjb250ZXh0Ijp7InBhZ2UiOiJwdWJsaWNhdGlvbiIsInByZXZpb3VzUGFnZSI6bnVsbH19
• Patel M., Singh S.D., Devi M.A., Raj A. (2024a). Agricultural Machinery and Equıpment. Advances in Agronomy-A Compilation of Research (s. 276-297). Stella International Publication.
• Pomfret R. (1981). The impact of EEC enlargement on non-member Mediterranean countries’ exports to the EEC. The Economic Journal, 91, 726-729.
• Riad N., Errico L., Henn C. Saborowski C., Saito M., Turunen J. (2012). Changing Patterns of Global Trade. International Monetary Fund.
• Sarıcoban K., Kosekahyaoglu L. (2017). Ticaret Sonrası Verilerle Rekabet Gücünün Ölçülmesinde Kullanılan İndeksler Üzerine Bir Literatür Taraması. The Journal of Academic Social Science, 5(47), 424-444. https://doi.org/10.16992/ASOS.12439
• Saxena S.B., Salze-Lozac’h V. (2010). Competitiveness in the Garment and Textiles Industry: Creating a supportive environment. A Case Study of Bangladesh.
• Schoot P.K. (2004). The relative similarity of China’s exports to the United States vis a vis other us trading partners. Unpublished manuscript, July-2004, 1-40.
• Siudek T., Zawojska A. (2014). Competitiveness in the economic concepts, theories and empirical research. Acta Scientiarum Polonorum. Oeconomia, 13, 91-108.
• TARMAKBIR. (2024, 26 Aralık). Tarım Makineleri Sektöründe Dış Ticaret Değerlendirme Notları, Nisan 2022. http://tarmakbir.org.tr/tr/genel-duyurular/1869-tar%C4%B1m-makineleri-sekt%C3%B6r%C3%BCnde-d%C4%B1%C5%9F-ticaret-de%C4%9Ferlendirme-notlar%C4%B1-nisan-2022.html
• Trade Map. (2023, 24 Aralık). Trade statistics for international business development, Monthly, quarterly and yearly trade data. Import & export values, volumes, growth rates, market shares, etc. https://www.trademap.org/Country_SelProduct_TS.aspx?nvpm=1%7c%7c%7c%7c%7cTOTAL%7c%7c%7c2%7c1%7c1%7c1%7c2%7c1%7c2%7c1%7c1%7c1
• Vlasenko L., Mykhailyk D.P., Bublei H., Ogloblina V. (2020). Evaluation Of The Composite Export Similarity Index On The Example Of China. Revista Electrónica de Investigación en Ciencias Económicas, 8, 135-149. https://doi.org/10.5377/reice.v8i16.10677
• Wang P.Z., Liu X.J. (2015). Comparative Analysis of Export Similarity Index between China and EU. International Conference on Management Science and Management Innovation (MSMI 2015).
• Wani N.U.H., Rahman A., Grover V., Mirzakhidova S., Mirwais Rasa M. (2024). Regional trade expansion opportunities in Central and South Asia: exploring trade complementarity, diversification and similarity. Cogent Economics & Finance, 12, 1-19. https://doi.org/10.1080/23322039.2024.2363461
• World Bank WB. (2024, 18 Aralık). Indicators. https://databank.worldbank.org/source/world-development-indicators#
• World Economic Forum. (2024, 28 Aralık). These countries are the best at attracting, developing and retaining talent Kasım 2023. https://www.weforum.org/stories/2023/11/most-talent-competitive-countries-2023/