The Role of Extensive and Intensive Margins in Turkey's Export Growth

TÜRKCAN K., Piskin E.

IKTISAT ISLETME VE FINANS, vol.29, no.336, pp.83-116, 2014 (SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 29 Issue: 336
  • Publication Date: 2014
  • Doi Number: 10.3848/iif.2014.336.3823
  • Journal Name: IKTISAT ISLETME VE FINANS
  • Journal Indexes: Social Sciences Citation Index (SSCI)
  • Page Numbers: pp.83-116
  • Keywords: Export, Extensive Margin, Intensive Margin, MONOPOLISTIC COMPETITION, PRODUCT DIFFERENTIATION, VARIETY, TRADE, SPECIALIZATION, QUALITY, IMPACT, UNION
  • Akdeniz University Affiliated: Yes

Abstract

This paper examines the sources of export growth in Turkey. For this purpose, the study decomposes Turkey's export growth into extensive and intensive margins by using two methodologies, the count method and the decomposition method of export growth rates. We further decompose the intensive margin into price and quantity components. Detailed bilateral trade data, BACI, from CEPII are employed to analyze Turkey's export statistics with 211 countries at the HS-6 level over the period 1998-2011. Additionally, we employ these methods for different categories of goods (final goods and intermediate goods exports). The results suggest that the intensive margin plays the most important role (99% of total export growth) in Turkey's export growth. Further, 66% of this intensive export growth results from quantity growth, whereas 33% is driven by price growth. Similarly, the export growth rates of final and intermediate goods are explained by the intensive margin.