COMPETITIVENESS ANALYSIS OF THE TURKISH CHEMICAL INDUSTRY: A COMPARISON WITH THE SELECTED EUROPEAN UNION COUNTRIES

Year 2017, Volume: 4 Issue: 2, 129 - 137, 30.06.2017

Elife Akis

Abstract

Purpose- The aim of this
study is to analyze the international competitiveness of the chemical industry
of five EU member countries (Croatia, Hungary, Latvia, Lithuania, and Poland)
and Turkey, which fall into 19 economies that are in the transition stage from
2nd level (efficiency- driven)   to 3rd
level (Innovation-driven) as stated in the Global Competitiveness Report
classifying the countries according to their development levels.

Methodology- The analysis was
held according to STIC Rev.4 using the 2007-2015 actual export figures of the
chemicals and related products by calculating the Revealed Comparative
Advantage – RCA indices explained by Balassa.

Findings- The results of the analysis show that Croatia, Hungary and
Lithuania generally have rather high competitive advantage while Turkey, Poland
and Latvia generally are lack of competitiveness.
 Turkey, Poland and Latvia have to
develop their own technologies in producing high–tech, high value added goods in
order to improve their chemical industries to a structure with competitiveness.

Conclusion- Chemical
industry, as the raw material and intermediate goods supplier of many sectors,
has a very important role both in overall production and in foreign trade.  The industrial development of a country
increases its requirement of chemical products. In global perspective countries
aiming to improve their international competitiveness have to strengthen their
chemical industry.

Keywords

Competitiveness, revealed comparative advantage, chemical industry, Turkish chemical industry, selected EU countries chemical industry

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