Competitiveness of foreign trade: The comptitive power of European Union countries against Turkish economy

The modern and up-to-date research with origins in the absolute and comparative advantage is led by Balassa with his theory `revealed comparative advantage. The most important index used for measuring international competitiveness is the revealed comparative advantages index. For the calculation of this index values of export and import are utilized. The outcome of the index specifyies the competitive advantages or the competitive disadvantage of one of the country over another country.This study has analyzed the competitiveness of economic structures in between the first 12 countries of the EU and Turkey and the research has concluded that Turkey has a comparative disadvantage in particular at the intermediary and capital goods. As well as this very finding, the problematization of Turkeys dependence on the dependency of Turkish exports on foreign resources has been elucidated on the basis of competitiveness indices and it has reached the finding that even though Turkey has a comparative advantage, Turkey will continue to proceed with the exports of intermediary and capital goods.