International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

 

ANALYSIS OF INTRA-INDUSTRY TRADE BETWEEN TURKEY-BOSNIA AND HERZEGOVINAANDALTERNATIVE INDEX
Mehmet MERCAN, Haluk YERGİN

Abstract
Intra-Industry Trade(IIT)expressed as both the export and import of the same goods (those in statistical product line), that traditional trade theories could not explain, within the period has been adressed within the scope of the "new foreign trade theory", and occupies an important place in today's world trade.Indexes were developed in order to measure IIT rates and applied studies related to the subject were carried out.In this study,the IIT between Turkey and Bosnia and Herzegovina were examined at the “Level 1 Digit SITC Rev. 3" and a general tendency of the trade was tried to be determined. Grubel-Lloyd index and the alternative index were used in this study.In this study, the effects of “Free Trade Agreement (FTA)” which took effect in 2002 between Turkey and Bosnia and Herzegovina were analyzed.Moreover, positive-negative aspects of Grubel-Lloyd index were analyzed, and because of not measuring intra-industry sectoral competitiveness, an alternative index was used.

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