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Journal of Economic and Social Research 10(2) 2008, 25-4 1
Revealed Comparative Advantage and Competitiveness:
A Case Study for Turkey towards the EU
Vildan Serin* Abdulkadir Civan
Abstract. This paper seeks to quantify the extent to which Turkey has a
comparative advantage in the tomato, olive oil, and fruit juice industries and how
this has changed over the period 1995-2005 in the EU market. To study Turkeys
competitiveness and its progress two widely used indexes are calculated : the
revealed comparative advantage (RCA) and the comparative export performance
(CEP) index. In addition, import demand functions of the EU are estimated for rival
countries. Using regression analysis we hypothesize that if Turkey is a competitor
for these countries, its price will have a statistically significant effect on export
demand functions. Both index and regression results indicate that Turkey has a
strikingly high comparative advantage in the fruit juice and olive oil markets in the
EU but this is not the case in the tomato market.
JEL Classification Codes: QIO, Q17, F14.
Keywords: Agriculture, Fruit and Vegetable Industry, Competitiveness, Revealed
Comparative Advantage, Comparative Export Performance, EU, Turkey, Greece,
Spain, Italy.
1. Introduction
In 1995 Turkey signed the Customs Union Agreement with the European
Union. A Customs Union (CU) has been in place for industrial and
processed agricultural products since January 1996. However, the Customs
Union does not cover a number of essential areas, such as traditional
*^Fatih
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