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Comparative Advantage And Competitiveness Essay

Decent Essays
This paper is going to summarize the article Revealed Comparative Advantage and Competitiveness: A Case Study for Turkey towards the EU written by Vildan Serin and Abdulkadir Civan. The study based on the theory of comparative advantage established by the British economist Ricardo in the early of the 19th century. The Ricardian model assumes that productivity of labor is different from country to country and the country exports the goods in which it has a comparative advantage.The study attempts to examine the comparative advantage of Turkey in the tomato, olive oil and fruit juice industries over Italy, Greece and Spain and how its comparative advantage changes over the period of 1995 to 2005. Besides, the authors hypothesize that the prices…show more content…
Firstly, to increase the persuasiveness and coherence of the study about the effect of the EU new membership on trade, the author can replace the data of Portugal for the data of Italy. Secondly, it would be more comprehensive than if the author mentioned the formula of the regression analysis model.
Conclusion
The study illustrates that Turkey has comparative advantage in olive oil and fruit juice products, but not in the tomato product over Greece, Spain and Italy in the EU market during the period of 1995-2004. The study also finds out that the competitive advantage of Turkey has been declining since 2000 due to the result of accession of new members in EU, which also export those products more importantly, the regulations from both Turkey and the EU. Besides, the regression analysis also implies that change in price of Turkish product significantly sharps the export of Greek, Spanish and Italian products to the EU market. In conclusion, the paper provides some important empirical findings in competitiveness of Turkey in tomato, olive oil and fruit juice over its rival;however, the authors still can improve the plausibility of the article by over come the mentioned
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