Do Impacts of Factors Affecting Goods Trade Diffirentiate for Service Trade? The Case of TURKEY

Abstract

As known, international trade, which can be thought as the way that individuals, organizations, and countries fulfill their needs, is a very important concept. Although, for a long time, international trade has been associated with only international trade of physical products, especially after 2000s, researchers have begun to think that there can be international trade of services which is different from international trade of goods. In this sense, both of differences among these two concepts, and factors, that possibly affect and are affected by these two concepts, became an area that requires to be understood clearly in the literature. Therefore, this research aims to analyze the relationship between the variables (globalization, foreign direct investment, informal economy, and internet technology), that are not widely studied in Turkish literature in terms of service trade, and Turkish service export. To understand the relationship among mentioned variables, cointegration analyzes was conducted for the period of 1970-2018 by using ARDL model. As a result of the analysis, it was understood that the answer to the question of whether the effects of the factors affecting the trade of goods differ for the export of services is yes based on the example of Turkey. In this direction, it has been observed that globalization has the opposite effect of what is expected. Lastly, this research provides some recommendations for policymakers.

Infrastructure as a Determinant of National Advantage in Service Export: The Case of Türki̇ye

“…Even there are many studies considering the determinants of international trade including both goods and services exports (Warner and Kreinin, 1983: 96-98;Bahmani-Oskooee, 1986: 107;Rose, 2004;Márquez-Ramos, 2007: 1-2), the number of research examining the determinants of only service export, which has different characteristics compared to goods export (Lennon, 2009: 2), is rare and have begun to be discussed over the last decade (Ahmad, Kaliappan and Ismail, 2017: 329;Matuszczak, 2019: 143;Situmorang and Agustina, 2021: 459). The situation is similar for Türkiye as well (Bilgiç, 2019a: 22;Bilgiç, 2019b: 144;Bilgiç, 2021Bilgiç, : 1058Yıldız, 2021Yıldız, : 1047Koca and Yıldırım, 2021: 442;Tufan, 2021: 1).…”

“…As to this study adopts ARDL cointegration analysis. There are several reason to prefer ARDL model such as ability to use unrestricted error correction model, applicability without checking whether variables are I(0) or I(1), applicability for small samples (Pesaran, Shin, and Smith, 2001: 315;2005: 424-425;Narayan and Smyth, 2005: 102-104;Bilgiç, 2021Bilgiç, : 1066. In addition, ARDL models largely eliminate problems arising from non-stationary series, provide different lag lengths for…”

“…The Equation 5is established by considering the hypotheses. a0 refers to error correction coefficient in the model and the error correction term indicates long-term equilibrium rate that emerges in short-term after a shock (Bilgiç, 2021(Bilgiç, : 1070. When the term of error is negative and statistically significant, it is possible to say that there is a convergence towards the long-term equilibrium point (Bilgiç, 2021(Bilgiç, : 1070.…”

“…Generally, the concepts discussed within this scope are internet infrastructure, communication facilities, and telecommunication infrastructure. In addition, it is observed that studies in Türkiye usually focus on the role of the internet in service trade within the scope of infrastructure (Bilgiç, 2021: 1056, Yıldız, 2021: 1046.…”

Small Is Beautiful and Important: Economies and Firms Trading in Digital Services

“…Furthermore, like goods, the services trade may be fragmented across countries, meaning that service firms contribute to different countries (Antràs & Gortari, 2020;Benkovskis et al, 2019;Bilgiç, 2021). Previous research has estimated service trade flows in the four modes of supply by merging trade in services with affiliate industry-level statistics (Rueda-Cantuche et al, 2016;Kersan Skabic, 2020;Wettstein et al, 2019).…”