|Department of Economics|
Gülçin Elif YÜCEL
A Comparative Analysis of Quality Competition in Manufacturing Exports Based on Intra-Industry Trade
(Supervisor: A. Suut Doğrruel)
ABSTRACTThe intra-industry trade (IIT) revolution in trade theory, which is the phenomenon of simultaneous exports and imports of goods within the same industries, led to a different view of the world trade in several respects. Since countries might be supplying goods that are considered as low quality in a country and as high quality in the other country, the quality of goods play an important role in the demand for exported goods of a country. The main objective of this study is to evaluate the position of manufacturing industries of selected emerging economies in the EU market in order to get an information about their quality competition based on intra-industry trade. In this respect, six emerging countries are taken as a reporter- Brazil, China, India, Mexico, Russia and Turkey (BCIMRT) and five largest EU countries as partners- France, Germany, Italy, Spain and United Kingdom (EU-5). Making use of the bilateral trade data, this study also examines the export similarities and the differences in the quality of goods exported from BCIMRT to the EU-5 market. The pattern of trade is examined based on the bilateral trade data for 2000-2010 period by using International Standard Industrial Classification (ISIC) Revision 3 data at the 4-digit level. All calculations are made for the manufacturing sector. According to results, there is a significant export competition between Turkey and China in EU-5 market. Additionally, prominent sectors of Turkey- textiles, basic metals and motor vehicles, trailers and semi-trailers- are introduced and their export capability in EU-5 market are discussed by making some comparisons.