The Effect of Foreign Trade and Customs Union Between Turkey-EU (15 Countries) Into Marginal Intra-Industry Trade and Its Comparison With Intra-Industry Trade

Increase in intra-industry trade (iit) co-efficient calculated according to grubel-lloyd model does not always indicate iit increase in that sector. increase in interindustry trade in the related sector may cause an increase in intra-industry trade co-efficient. therefore, in order to define the real effect of intra-industry trade in the related sector, “marginal intra-industry co-efficient index” was developed. in the study, foreign trade and marginal intra-industry trade (miit) of the 1990-2008 period between eu (15 countries) and turkey were examined, and effects of customs union were searched. in the meit analysis between turkey-eu (15 countries), in the primary goods belonging to 0-4 group, an important stable change was not found on miit rates, but an increase in foreign trade volume was noted. in contrast, despite an increase in foriegn trade volume in 5-8 industrial goods, a change in miit rates was found.