Revealed Comparative Advantage and Competitiveness: A Case Study for Turkey towards the EU.

This paper seeks to quantify the extent to which Turkey has a comparative advantage in the tomato, olive oil, and fruit juice industries and how this has changed over the period 1995-2005 in the EU market. To study Turkey's competitiveness and its progress two widely used indexes are calculated: the...

Descripción completa

Detalles Bibliográficos
Publicado en:Journal of Economic & Social Research Vol. 10; no. 2; pp. 25 - 42
Autores principales: Serin, Vildan, Civan, Abdulkadir
Formato: Artículo
Publicado: Department of Economics at Fatih University 2008
Materias:
Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:This paper seeks to quantify the extent to which Turkey has a comparative advantage in the tomato, olive oil, and fruit juice industries and how this has changed over the period 1995-2005 in the EU market. To study Turkey's competitiveness and its progress two widely used indexes are calculated: the revealed comparative advantage (RCA) and the comparative export performance (CEP) index. In addition, import demand functions of the EU are estimated for rival countries. Using regression analysis we hypothesize that if Turkey is a competitor for these countries, its price will have a statistically significant effect on export demand functions. Both index and regression results indicate that Turkey has a strikingly high comparative advantage in the fruit juice and olive oil markets in the EU but this is not the case in the tomato market.