Investigation on intra industry trade between Türkiye and the D-8 countries

Intra-industry trade has emerged to address the inadequacy of classical and new foreign trade theories in explaining the foreign trade of countries. There are some country and industry specific determinants that affecting intra-industry trade. In this study, SITC 3-digit data between 2002-2022 was used to examine intra-industry trade between Türkiye and D-8 countries. The Standard and Adjusted Grubel-Lloyd index, which is widely used in the literature, was used to examine intra-industry trade. As a result of the analysis, it was observed that Türkiye's intra-industry trade rates were relatively higher in some sectors in trade with Indonesia, Egypt and Pakistan. When Türkiye's trade with the D-8 total is examined, it is seen that intra-industry trade occurs in sectors 6 and 8, while it occurs in the form of inter-industry trade in other sectors. Therefore, when we look at Türkiye's trade with the relevant countries and the D-8 total, intra-industry trade is not high. This situation indicates that Türkiye is carrying out a complementary trade rather than a rival economy.