Sectoral clustering and competitiveness in Turkish manufacturing industry: An analysis for the selected regions

In this study; sectoral clustering in Turkish manufacturing industry and the relation between sectoral clustering and competitiveness in terms of Turkey-EU trade relations and selected NUTS II regions are examined for the period of 2003-2008. Location Quotient Index was used as main method and Gini Regional Specialization and Gini Industrial Concentration Indexes were used as auxiliary methods to find out sectoral clustering and Volrath's Revealed Competitiveness Indexes approach was used to find out competitiveness. The main thesis of the study is determined as testing the existence of positive correlation between sectoral clustering and competitiveness. Within this test, correlation analysis was conducted between the findings of the analysis of sectoral clustering and the findings of competitiveness in terms of selected nine NUTS II regions. The findings of this analysis show strong positive correlation between sectoral clustering and competitiveness for TR33-(Manisa, Afyonkarahisar, Kütahya, Uşak) and TR41-(Bursa, Eskişehir, Bilecik) NUTS II regions. The thesis of this study was not verified for TR10-İstanbul, TR31-İzmir and TR51-Ankara NUTS II regions. Economical actions in these big cities show intense diversification other than manufacturing industry. In this diversification, sectors other than manufacturing industry, especially Trade and Services sectors, are taking the majority. Conducted statistical analysis for the manufacturing industry could be carried out by means of the data of Trade and Services sectors in above-mentioned three regions. The findings show positive but weak correlation between sectoral clustering and competitiveness. This result originates from the characteristic of trade and services which are substantially locational. Firm-based surveys and analysis are needed for the existing sectoral clusterings in TR33-(Manisa, Afyonkarahisar, Kütahya, Uşak) and TR41-(Bursa, Eskişehir, Bilecik) NUTS II regions where strong positive correlation between sectoral clustering and competitiveness was found in this study. Keywords: Sectoral Clustering, Competitiveness, NUTS II Regions, Turkish Manufacturing Industry, European Union.