Industrial Upgrading: The Case of Turkish Manufacturing Industry


KARAGÖZ ÖZENÇ F.

2nd Annual International Conferen on Social Sciences, İstanbul, Turkey, 2 - 04 June 2016, pp.727-753

  • Publication Type: Conference Paper / Full Text
  • City: İstanbul
  • Country: Turkey
  • Page Numbers: pp.727-753

Abstract

This study aims at analyzing the production structure of the automotive industry in Turkey from the perspectives of Global Production Networks. Automotive industry has been considered as the chief industry in the process of industrialization for most of the developing countries. For that purpose, many economies have tried to find a way in order to be articulated into global automotive networks since 30 years. But once it has been succeeded, some of the economies faced with new issues, such as imported input dependency, current account deficit and vulnerability to global economic shocks. In order to overcome these kinds of macroeconomic problems, industrial upgrading is suggested as a vital tool for a country in order to increase its value-added in an integrated production structure. In this study, industrial upgrading of Turkey is evaluated by using both firm-specific information and country-specific trade data. In doing so, it is aimed to shed light competitive and comparative advantages of Turkish automotive industry. By taking into consideration “relative” specialization patterns of firms in the assembly and supply industry, this study tries to evaluate Turkey’s position in European automotive industry division of labor.