AI Summary & Key Takeaways
AI InsightTurkey has moderate comparative advantage in exports by low technology intensity and weak competitive comparative advantage in exports in medium technology intensity.
📌 3 Key Takeaways
Abstract
The main purpose of this study is to examine the effects of German-Turkish industry policies on manufacturing industry competitiveness. In accordance with this purpose, firstly, industrial policies of both countries will be discussed theoretically within the framework of Industry 4.0 basic approach. Secondly, the manufacturing industries of both countries will be compared in terms of selected indicators such as productivity, capacity utilization rates, value added, production index, R&D expenditures and employment. During the implemantation phase, the competitiveness of German-Turkish manufacturing industries in exports will be analyzed for the years 1996-2019, which covers the post-Customs Union period. SITC Rev.3, 3-digit product and / or product groups in the UN Commercial Statistics Database (UN Comtrade) are used as the data set for the analysis in question. Competitiveness values in exports for a total of 134 products and / or product groups with low, medium and high technology intensity according to technology levels are calculated separately for both countries and technology groups with Béla Balassa’s Revealed Comparative Advantage (RCA) Index. The answer of the question why German manufacturing industry exports between 1996 and 2018 is not strong or moderate and only weak compatitive in high technology density can be given with the shift of the production to Eastern countries especially to China due to the economic and geographical cost advantages. Turkey has moderate comparative advantage in exports by low technology intensity and weak competitive comparative advantage in exports in medium technology intensity.
Özet
The main purpose of this study is to examine the effects of German-Turkish industry policies on manufacturing industry competitiveness. In accordance with this purpose, firstly, industrial policies of both countries will be discussed theoretically within the framework of Industry 4.0 basic approach. Secondly, the manufacturing industries of both countries will be compared in terms of selected indicators such as productivity, capacity utilization rates, value added, production index, R&D expenditures and employment. During the implemantation phase, the competitiveness of German-Turkish manufacturing industries in exports will be analyzed for the years 1996-2019, which covers the post-Customs Union period. SITC Rev.3, 3-digit product and / or product groups in the UN Commercial Statistics Database (UN Comtrade) are used as the data set for the analysis in question. Competitiveness values in exports for a total of 134 products and / or product groups with low, medium and high technology intensity according to technology levels are calculated separately for both countries and technology groups with Béla Balassa’s Revealed Comparative Advantage (RCA) Index. The answer of the question why German manufacturing industry exports between 1996 and 2018 is not strong or moderate and only weak compatitive in high technology density can be given with the shift of the production to Eastern countries especially to China due to the economic and geographical cost advantages. Turkey has moderate comparative advantage in exports by low technology intensity and weak competitive comparative advantage in exports in medium technology intensity.