An empirical study on factors affecting intra-industry trade in Turkish manufacturing industry

The aim of this study is to analyze the factors affecting trade and intra-industry trade, intra-industry in Turkey's manufacturing industry. The study on intra-industry trade between the years 1988-2017 under the trade partner of Turkey's manufacturing industry with 29 countries Grubel Lloyd index is used in the study. The results obtained and the factors affecting intra-industry trade in the period of 1998-2017 are analyzed by panel data method. Country and policy-based determinants of intra-industry trade are dealt with asdevelopment level, development level differences, market size, market size differences, outward-openness ratio, outward-openness ratio differences, geographical distance, and participation in economic integration. The results obtained from the established models are that the level of development, market size and participation in the customs union have a positive effect on intra-industry trade while the geographical distance is negative. It also concluded that Turkey's intra-industry trade between the EU member countries have the high rates.