An analysis of intra-industry trade between Turkey and the European Union based on technology intensity

The economic structure has changed significantly following World War II, leading to a transformation in foreign trade that traditional theories cannot adequately explain. While classical international trade theories explain intra-industry trade between developed and less developed countries, modern trade theories generally attempt to elucidate intra-industry trade among countries at similar levels of development. Intra-industry trade, in a broad sense, involves the simultaneous import and export of goods produced within the same sector by a country. Especially among countries with similar levels of development, the simultaneous import and export of identical goods have introduced the concept of intra-industry trade into our lives. The aim of this study is to analyze the structure of intra-industry trade between Turkey and European Union countries from 2013 to 2022. The technology classification under the United Nations International Standard Industrial Classification is employed in this study. Manufacturing industry sectors are grouped according to low, medium, medium-high, and high technology intensity. Based on the intra-industry trade values calculated for each sector, it is observed that Turkey's exports to European Union countries are generally concentrated in low technology intensity goods, and intra-industry trade is high in these product groups. On the other hand, Turkey imports goods with medium-high and high technology intensity from EU countries. The intra-industry trade levels of these product groups are low, and the trade pattern is closer to intra-industry trade.