Estimation of international trade

The study analyzed foreign trade volume among Turkey and 37 OECD countries, especially the sway of the LPI on Turkey's foreign trade volume. The effects of the LPI in determining Turkey's foreign trade volume were analyzed by using the data of Turkey and OECD countries in the 2007-2020 period. In the study, three different models were established in which the total foreign trade volume, Turkey's exports and imports with OECD countries are dependent variables. The variables used in the models are the GDP of Turkey and OECD countries, R&D investments, population, LPI, and distance between countries. Since the models have problems with autocorrelation, heteroskedasticity, and cross-section dependence, the Huber-Eicker-White estimator that robust to these problems, was used. When the results obtained were examined, it was concluded that the sign of the relationship between GDP and foreign trade volume of the countries in the model that the foreign trade volume was the dependent variable was positive. The gravity model has main variables used in the studies. Among these, the variable that expresses the geographical distance between countries is among the most used. In the study, the direction of relationship with trade flows is negative. Turkey's LPI positive affects foreign trade volume in the first two models. It's been observed that there is a positive relationship between the populations of OECD countries and Turkey's foreign trade volume, in line with expectations. When the study's primary purpose is evaluated, Turkey's LPI has a positive and significant effect on foreign trade volume.