The Effect of Foreign Trade and Customs Union Between Turkey-EU (15 Countries) Into Marginal Intra-Industry Trade and Its Comparison With Intra-Industry Trade

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Increase in Intra-Industry Trade (IIT) co-efficient calculated according to Grubel-Lloyd model does not always indicate IIT increase in that sector. Increase in interindustry trade in the related sector may cause an increase in intra-industry trade co-efficient. Therefore, in order to define the real effect of intra-industry trade in the related sector, “Marginal Intra-Industry Co-Efficient Index” was developed. In the study, foreign trade and Marginal Intra-Industry Trade (MIIT) of the 1990-2008 period between EU (15 countries) and Turkey were examined, and effects of Customs Union were searched. In the MEIT analysis between Turkey-EU (15 countries), in the primary goods belonging to 0-4 group, an important stable change was not found on MIIT rates, but an increase in foreign trade volume was noted. In contrast, despite an increase in foriegn trade volume in 5-8 industrial goods, a change in MIIT rates was found.

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Marginal Intra , Industry Trade , Intra , Industry Trade , European Union , Turkey

Journal Of Graduate School Of Social Sciences

382

Journal Of Graduate School Of Social Sciences