The Effects of Free Trade Agreement on Intra-Industry Trade (A Case Study of Textile Sector in Turkey)

Gurler, Zafer; Erdal, Gülistan; Erdal, Hilmi; Çiçek, Adnan

doi:10.3923/jas.2006.1204.1208

Cited by 6 publications

(3 citation statements)

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“…The following graphs based on the GL index show structure and trends in trade between India and trading partners. We cannot mention the presence of IIT if GL < 0.5 (Gurler et al 2006). Nonthless a value gretater than 0.3 indicates the potential for IIT.…”

Section: Analysis and Resultsmentioning

confidence: 99%

“…That a freer trade environment, facilitated either by multilateral or bilateral liberalization, would encourage IIT between the countries was seen in the analysis of trade pattern between USA and NAFTA (Ekanayake et al 2001). Gurler et al (2006) also showed that the FTAs were instrumental in increasing IIT in case of Turkey especially in textile sector. Therefore in our present model we include a dummy variable for FTAs (both SAFTA and ASEAN) to capture the impact of FTA on IIT.…”

Section: Methodology and Datamentioning

confidence: 97%

“…VIIT was found to be dominant in the trade between the two. Sectoral-level analysis of Turkey in the context of its FTA showed that the agreement has a positive effect on IIT, especially in the textile imports of Turkey (Gurler et al 2006). Foster and Stehrer (2012) suggest that the formation of PTAs is associated with an increase in IIT between PTA members.…”

Section: Theoretical and Empirical Literaturementioning

confidence: 99%

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An Analysis of the Structure and the Determinants of Intra-industry Trade in Agri-food Products: Case of India and Selected FTAs

Varma

Ramakrishnan

2014

Millennial Asia

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The growing evidence of intra-industry trade (IIT) in integrated markets has provided sufficient justification for trade in countries with similar endowments. While several studies have been undertaken looking at manufacturing and industrial goods, this article analyzes the structure and determinants of trade in agri-food products between India and members from its selected Free Trade Agreements (FTAs)—the South Asian Preferential Trade Agreement (SAFTA) and Association of Southeast Asian Nations (ASEAN). It is focused on agri-food products as the IIT literature in general is more focused on manufacturing products. The analysis found that India’s trade with partner countries is predominantly in the form of IIT. Nonetheless the relative IIT was found higher for countries such as Bhutan, Bangladesh and Nepal among SAFTA members and for Singapore among selected ASEAN members. The econometric analysis using to bit model showed that the free trade agreement had a positive impact on IIT. The empirical analysis further revealed that similarities in demand and agricultural-related factor endowments have a positive impact on IIT. Nonetheless macro variables from the supply side—GDP and per capita GDP—showed that the higher the dissimilarities the higher the IIT. The negative impact of increased average size on IIT is justifiable on account of the fact that the exploitation of scale advantages is lower for agri-food products as compared to other manufacturing products.

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Section: Analysis and Resultsmentioning

confidence: 99%

Section: Methodology and Datamentioning

confidence: 97%

Section: Theoretical and Empirical Literaturementioning

confidence: 99%

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