PRODUCT CONCENTRATION AND DIVERSIFICATION IN INTERNATIONAL TRADE: A COMPARISON BETWEEN TÜRKİYE AND CHINA

Authors : Muhammed Fatih Aydemir

Pages : 151-166

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Publication Date : 2024-10-30

Article Type : Research Paper

Abstract :In order for countries to achieve stable and sustainable growth in international trade, it is necessary to reduce product concentration in exports and imports or to increase product diversification. The objective of this study is to analyze the product concentration and diversification in exports and imports for Türkiye and China, which represents the largest share of Türkiye\'s imports and is the world\'s largest exporter. Additionally, a comparative analysis between the two countries will be conducted. The Harmonized System (HS) 2-digit foreign trade data for the period between 2001 and 2022 were obtained from the International Trade Centre (ITC) Trade Map database. Concentration and diversification analyses were conducted on the aforementioned data. The results of the analysis indicate a downward trend in Türkiye\'s product concentration in exports, with a lower concentration than that observed in China. Türkiye\'s product concentration in imports exhibited a decline until 2016, after which it began to increase significantly. When the two countries are compared, it is evident that Türkiye\'s product concentration in imports is lower than that of China. In recent years, Türkiye\'s product diversification coefficients in exports have been similar to China\'s, while China\'s product diversification in imports has been higher than Türkiye\'s. These comparisons demonstrate that product diversification is not only important in international trade, but also that the product groups in which the concentration is located are equally important.
Keywords : Yoğunlaşma, Çeşitlendirme, Uluslararası Ticaret, Türkiye, Çin