Iron and steel intra-industry trade with Black Sea Economic Cooperation of Turkey

We aim to measure the level of intra-industry trade in the Iron and Steel Industry between Turkey and the Black Sea Economic Cooperation and to make a comparison for the selected countries. Besides, it is aimed to investigate some industry-specific and country-specific Intra-industry trade determinants. In the literatüre, there are some works deal with only the Iron and Steel Industry and some works concentrate only on the the Black Sea Economic Cooperation commerce, respectively. However, there is no such research focusing on the level of the Iron and Steel intra-industry trade between Turkey and the the Black Sea Economic Cooperation. This stuy is the one which tries to fulfill this deficiency. The Grubel-Lloyd index and panel data analysis are used to investigate the role of the Iron and Steel intra-industry trade among the member countries with the data collected from 11 and 9 countries respectively for the periods of 1992-2018 and 1997-2018. One finding is that Turkey's Iron and Steel Industry intra-industry trade with the the Black Sea Economic Cooperation has generaly been low. Moreover, it is found that Turkey's level of development for the intra-industry trade determinants compared to the other countries within the Black Sea Economic Cooperation in terms of market size, trade imbalances, and the level of openness to foreign markets is consistent with the theoretical expectations. However, export-import coverage ratio and distance coefficent do not meet our theoretical expectations. Keywords: Black Sea Economic Cooperation, Intra-Industry Trade, Iron and Steel, GrubelLloyd Index