The relative concentration of exports markets and products increases the volatility of Turkey's export revenues, paralell to fluctuations in the demand conditions. While avoiding large fluctuations in export recept requires maintenance of the market shares in such major export destinations as the EU market, this can often be achieved only through intense price competition, as yhe most turkish exports have close subtitutes produced in other countries. In this paper, we consider the price competition between Turkish and South East Asian (SEA) exporters of selected manufacturing products in EU market where this competition is particularly stiff, and analyzes its effects on relative market shares. For this purpose, we estimate a model which takes the relative EU market shares of Turkish and SEA exporters of commodities we consider as a function of the prices of imports from respective countries. Our analysis concentrates on the leading manufacuring export categories having considerable shares in Turkey's export receipts. Our results indicate that price competition plays a significant role in explaining the market shares of Turkish and SEA exporters, and provide information on the magnitude of relative price elasticities. The results also point to the possible direction through which the ways Turkey's geographic proximity to the EU markets and its Customs Union agreement with the EU contribute to the price competitiveness of Turkish products can be evaluated.
Key words: na Article Language: EnglishTurkish
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