Is Turkey Turning Its Face Away From Japan to China and Korea? Evidence from Trade Relations

Authors : K Ali AKKEMİK

Pages : 45-62

View : 25 | Download : 11

Publication Date : 2016-04-01

Article Type : Research Paper

Abstract :The economic relations between Turkey and Japan have recently been on the decline. This is partly a reflection of the ongoing economic transformation in the East Asian region, where China and Korea have caught up with Japanese industries and technology in most sectors. Korean and Chinese firms have gained competitive power over Japanese firms, which have traditionally been champions of manufacturing. Partly as a consequence of the ailing Japanese economy, Turkish industry has recently turned to Korea and China as sources of industrial supplies. This paper shows the extent to which the Turkish economy has become more dependent on industrial inputs from Korea and China at the expense of the declining importance of Japan. This is discussed in conjunction with the ongoing free trade negotiations between Turkey and Japan
Keywords : Turkey, Japan, Free Trade Agreement, Import Dependence, Foreign Direct Investment