AB-15 Pazarinda Rekabet Gücümüz: Yaygın ve Yoğun Marjlar

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EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey.

[English Title] Turkey’s Export Competitiveness in the EU Market: Extensive and Intensive Margins [English Abstract] One of the most challenging issues for developing countries is the need to reduce their dependence on traditional export products. In order to establish a more reliable basis for foreign exchange earnings and compete more successfully in international markets, not only increasing export earnings but also exporting new product varieties is required. Export diversification can be attained by changing the share of existing commodities (intensive margin) and including new commodities in the export portfolio (extensive margin). In this study, we evaluate Turkey’s competitive position in the EU-15 market against its non-EU-15 competitors in terms of its intensive and extensive margins for the period 1996-2006. More specifically, we determine the extent to which the rise in Turkey’s exports in the EU-15 market is attributable to increases in existing exports and to increases in new product varieties. Relying on our calculations, we compare Turkey to its main competitors in this market by applying the approaches developed by Feenstra and Kee (2007) and Amiti and Freund (2008). According to our analysis, for all competitors in the EU-15 market, the growth of exports has arisen primarily from the intensive margin, rather than the extensive one. Our results also suggest that the extensive margin has been relatively more contributive in the case of developing countries, as compared to the developed ones. From the viewpoint of Turkey’s technological categories, we conclude that Turkey has important opportunities to improve its export growth and competitiveness in the EU-15 market by increasing the production and exports of new products especially in research-intensive sectors. [English Keywords] Turkey, European Union, export competitiveness, intensive margin, extensive margin The text is part of a series EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey Number 298 2 pages