Intra-Industry Trade between Turkey and OECD Countries: A Panel Data Analysis
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AbstractThe purpose of the present paper is to measure the extent of Turkey’s bilateral intra-industry trade (IIT) with OECD countries, and to test empirically various country-specific hypotheses concerning the determinants of IIT between Turkey and its 28 trade partners in OECD group. The findings reveal that Turkey generally posseses an upward trend and relatively high degree of IIT with these countries. Using panel data the empirical results show that IIT between Turkey and OECD countries are positively related to the country-specific variables, such as per capita income level and economic size, and negatively related to the geographical distance. In contrast to the findings of the much of the IIT studies, the variable of economic integration appears to have decreasing effect on IIT between two sides.