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Turkey's Comparative Advantages and Dynamic Market Positioning in the EU Market

Abstract: This paper reveals the static and dynamic comparative advantages of Turkish exports in the EU-15 market in relation to the exports of the non-EU-15 countries, covering the period 1996–2010, based on three-digit Standard International Trade Classification industries. In this regard, this paper is the first attempt to evaluate the dynamic revealed comparative advantage patterns of Turkey vis-à-vis its competitors in the European Union (EU) market. Whether there have been significant changes in Turkey's comparative advantages in the EU market and in which sectors these changes can be utilized further as potential advantages are two important issues affecting the prospects of trade policy in Turkey, which is a candidate for EU membership.