IMPORT DEPENDENCY ON INTERMEDIATE GOODS IN TURKEY: AN INPUT-OUTPUT ANALYSIS

Authors : Emre Ünal

Pages : 203-221

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Publication Date : 2020-10-09

Article Type : Research

Abstract :In this study, import dependency on intermediate goods within main manufacturing industries in Turkey was analyzed using World Input-Output Database (WIOD) between 2002 and 2014. Moreover, import dependency on intermediate goods within consumption goods sector was compared to that within export goods sector using a weighted multipliers approach. The analysis shows that Turkey’s import dependency on intermediate goods increased significantly in this period. The computer, electronic and optical products and automotive industries showed a markedly high import dependency on intermediate goods. The main reason for the import dependency in the automotive industry was the fact that; almost all goods produced were exported. The computer, electronic and optical products industry experienced high import dependency on intermediate goods, whereas the ratio of export to total output gradually declined and domestic consumption increased. The research reveals that after the 2000-2001 Economic Crisis, a number of institutional factors promoting a liberal economy and thus attracting FDI, stimulated the productivity growth of export goods. Thus, export growth was followed by high import dependency in export goods.
Keywords : Input-Output Analysis, Import Dependency, Institutional Economics.