In traditional trade theories, foreign trade plays the role of filling the gap of products not produced within the country. However, in the early 1960s increasing exchange of similar products, intra-industry trade, in the world trade have been observed by trade theorists. After the realization of the fact that intra-industry trade has become a very important part of world trade, more comprehensive studies on intra-industry trade have been conducted. At the end of the 1970s, trade theorists started to analyze intra-industry trade between developed countries (horizontal intra-industry trade) and intra-industry trade between developed and developing countries (vertical intra-industry trade) separately, because their characteristics were different. Horizontal intra-industry models were characterized by attribute variation between products while vertical intra-industry models were characterized by quality variation.
This study investigates the issue of measurement of horizontal and vertical intra-industry trade for Turkish manufacturing industry. We address the questions of whether the intra-industry trade in Turkish manufacturing sector is more of the horizontal or the vertical type and whether the vertical industries dominates horizontal industries in number at the 3- digit industry level.
Empirical analyses shows that the majority of intra-industry trade in Turkish manufacturing sector is of the vertical nature / Turkish manufacturing
sector exports lower quality varieties in exchange for higher quality varieties. Also, our empirical analyses indicate that a large percent of 3- digit industries considered as primarily involved in intra-industry trade are vertical industries.
| Identifer | oai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/1219088/index.pdf |
| Date | 01 September 2003 |
| Creators | Senoglu, Demet |
| Contributors | Erlat, Guzin |
| Publisher | METU |
| Source Sets | Middle East Technical Univ. |
| Language | English |
| Detected Language | English |
| Type | M.S. Thesis |
| Format | text/pdf |
| Rights | To liberate the content for public access |
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