How Do Income Elasticities of Exports and Imports Explain Trade Performance? A Panel Data Analysis for Turkish Manufacturing Industry


YILDIRIM N. , KARAGÖZ ÖZENÇ F.

International Interdisciplinary Business-Economics Advancement Conference, İstanbul, Turkey, 16 - 19 July 2014, pp.1

  • Publication Type: Conference Paper / Summary Text
  • City: İstanbul
  • Country: Turkey
  • Page Numbers: pp.1

Abstract

This study intends to examine the demand-side determinants of the trade performance of Turkey and to analyze the long-run elasticities of the exported and imported items classified as low, medium & high technology products according to the International Standard Industrial Classification (ISIC) system. By conducting a commodity-specific analysis, it is expected to have a better understanding of whether the increased volume of exports could be an engine of the economic growth in Turkey when compared with the import elasticities of the same product groupings with different technology levels. In order to analyze Turkey’s trade performance, export and import demand functions are estimated in a panel data setting for Turkey’s 46 trade partners and for the period covering 1992-2012. The model is also tested for sub-Groups of developed countries as well as developing ones in order to compare gains from trade with these Country groups. The empirical results of the study will give insight on the trade performance of Turkey for both different product and different country groupings.