The profits attained from foreign trade, and a highly competitive industrial structure are very important in increasing the welfare of countries. Recently, trade flows for product differentiation come into prominence especially in competitive industries. At this point, we come across a concept that emphasized “Intra-Industry Trade”. Intra-industry trade (IIT) is that the products of the same industry are subject to both export and import. The aim of the study is to analyse IIT between Turkey and the European Union (EU) countries for the iron and steel sector. In the study, to determine the IIT level between Turkey and the EU countries for the 2009-2019 periods, we employed the Grubel-Lloyd (G-L) index. As a result of the study, the structure of trade between EU countries and Turkey in the iron and steel industry is identified to be IIT form. Countries with high IIT can be listed as Netherlands, Poland, Spain, Italy, Germany, Romania and Denmark. It is determined that these countries have a level of IIT above average 0.50 in the period of 2009-2019. Furthermore, IIT levels are analysed on the basis of sub-sectors for Italy, Spain and Germany which have a high volume of foreign trade with Turkey in iron and steel industry. As a result of the analysis, it is observed that the IIT-weighted trade structure continues in many of the iron and steel sub-sectors especially in Italy and Germany.
Primary Language | Turkish |
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Subjects | Economics |
Journal Section | Research Articles |
Authors | |
Publication Date | December 20, 2020 |
Submission Date | April 7, 2020 |
Published in Issue | Year 2020 |