THE EFFECTS OF THE CUSTOMS UNION ON TURKISH HOME APPLIANCE INDUSTRY
Abstract
The aim of this study is to evaluate the impact of the Customs Union on Home Appliance Manufacturing Industry in Turkey in the period between 1996-2006. The home appliance industry has been producing domectically since 1960s. Most of the product in the industry has been produced only by one or two producers for a long time. Only after 2000, the number of producers who produce refrigerator inreased to three. Not only the number of producers but previous studies on the concentration ratios also support that the structure of the home appliance industry is oligopolistic market structure. In 1996, the tariffs for the home appliance products imported from the European Union were reduced to zero. This raised the volume of import from the European Union Countries. The net profit margin for the leading company in Turkey was 10 % in 1996 where the same ratio is 2. 1 % for Whirlpool, a leading multinational company. While in the 15 years period, Whirlpool have kept its profit level around the same ratios during the period from 1991 to 2006, the ratio decreased 4. 7 % for the leading company in Turkey, in 2006. This decrease would be explained by large increase in the volume of the import of these products when the tariffs were removed in 1996.
Keywords
References
- Yiizal, Sinan. (2006). Beyaz E~ya Sanayisi 2006, Report on White Good Industry 2006, iGEME. Ankara. Retrieved on: September 8, 2007 from http://www .igeme.org. tr/ Arastirmalar/ulke _ sek/sektor.cfm ?sec=ara.
- Yiizal, Sinan. (2005). Report on White Good Industry 2005, ihracatl Geli~tirme Merkezi. Ankara. Retrieved on: November 14, 2006 from http://www .igeme.org.tr/ Arastirmalar/ulke _ sek/sektor.cfm?sec=ara.
Details
Primary Language
English
Subjects
-
Journal Section
Research Article
Authors
Zelha Altınkaya
This is me
Publication Date
December 25, 2008
Submission Date
September 16, 2008
Acceptance Date
-
Published in Issue
Year 2008 Volume: 16 Number: 1&2