Structure of intra-industry trade in the Turkish textile industry and its determinants

In traditional trade theories, foreign trade plays the role of filling the gap of products not produced within the country. However, in the early 1960s increasing exchange of similar products, intra-industry trade, in the world trade have been observed by economists. After the realization of the fact that intra industry trade has become a very important part of world trade, more comprehensive studies on intra-industry trade have been conducted. Intra-industry trade (IIT) is defined as exchange of goods in forms of export and import within the same industry.Textile and ready made clothes sector are the most important sector for industrialization. They have played an important role in developing economies growth. For industrialized countries,textile and ready made clothes sectors had been started before. But in time, these sectors started to grow up in new developing countries because of being labor-intensive industry. In this study, we?ll examine the intra-industry trade structure and development of the Turkish textile industry export/import activity with 220 countries. In addition using Grubel-Lloyd Index, we?ll calculate the IIT indicates of textile industry product.Category for intermediate goods,final goods and total goods accordance with 6 digit level of Harmonized System(HS 1996) for the period of 1996-2006.Finally,we will study determinants of trade of Turkish textile industry using panel econometric techniques.