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The Iron And Steel Industry Of Turkey Exports Concentration Analysis

The concept of concentration is defined as the distribution of buyers and sellers in terms of number and size in the product market. There is an inverse relationship between the number of firms in the sector and the competitiveness. As concentration increases, the number of firms in the market decreases and accordingly, the competitiveness of the sector decreases. The most important economic problem of the Developing Countries is the current account deficit which has reached large dimensions. The most effective way to reduce this deficit is that countries give priority to policies that increase their exports and reduce foreign trade deficit. as in other countries, foreign trade strategy of Turkey, primarily to reduce the foreign trade deficit by increasing exports. Reducing the concentration in exports is an important target by economic policy practitioners. Increasing the concentration reduction in the export product diversification in other words, Turkey will play an important role in achieving competitive advantage in the global economy. In this study, the export of iron and steel industry concentration analysis of Turkey's economy is aimed to make for the 2000-2017 period. The concentration of the nine sub-sectors of the iron and steel sector was analyzed using three-digit data and the Concentration Rates (CR-1 and CR-4) and the Gini-Hirschman Index (GHI) according to the Standard International Trade Classification (SITC Rev-3). According to CR-1, CR-4 and GHI Index results, Turkey concentration ratios of iron and steel sub-sector is low and product diversification is high for the 2000-2017 period. Turkey's economy in the iron and steel industry concentration ratio showed a decreasing trend in an orderly manner, especially after the year 2011. The year in which the sector concentration ratio was highest was 2008. Thus, in 2008 the global financial crisis in the world economy, Turkey can have an adverse effect on exports of iron and steel industry. According to the findings obtained from the study, it analyzed period in Turkey is highly competitive iron and steel sector, has been observed to exhibit a market structure close to full competition. Iron and steel sector maintains the distinction of being a key sector in the protection and enhancement of Turkey's global competitiveness.

Iron Steel Sector, Concentration Analysis, Market Structure, Concentration Rate, Gini-Hirschman Index.


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