Academic journal article Journal of Economic and Social Studies

Measurement of the Competitiveness of Turkey: EU Countries, 1980-2010 Period Comparison

Academic journal article Journal of Economic and Social Studies

Measurement of the Competitiveness of Turkey: EU Countries, 1980-2010 Period Comparison

Article excerpt


The common objective for all the countries in the changing world order is to provide competition conditions and increase the prosperity. However, competition is a multidimensional fact. Competitiveness of the countries and companies is depended on various factors. The importance of competitiveness has increased after the rapid change and development with the globalization in every sense. Studies about competition and competitiveness in countries also have increased.

Since competition and competitiveness are handled by various discipline in various aspects, there is no a common definition or measurement technique. However, if we want to classify in general, there are two points of view in the measurement of compititiveness. The first one is the studies carried out in micro (business and industry) level. The second one is the macro (country) point of view. While the competition among businesses inside the country and the effects of this competition on national and international market is emphasized in micro level approach, the status of the country in international competition is emphasized in macro approach. Competitiveness means that while countries try to increase the incomes of their citizens under the conditions of free and established market, at the same time they can present their products and services to the international markets and become successful.The definition mostly attributed in macro approach is this one (Çivi et al., 2008).

We can put in order the three basic characteristics of competitiveness according to the study results like this: The first one is that the main objective of having competitivenessis to provide an increase the living standards in the country and the prosperity of the citizens. This prosperity increases can be provided by paying attention to the activities like investment and production, increasing the cooperation between all institutions and paving the way for specialization. The second one is that the country should focus on its specific features, abilities and potentials in order to catch the opponent countries in producing the products and services and distributing them. The third one is that numerous indicators are used to analyze the competitiveness of the country. For instance, international market share, trade balance of the country, production, employment, openness i.e. (Çivi et al., 2008).

The competitiveness of Turkey with 15 basic countries of EU between 1980 and 2010 periods was tried to be measured by the globalization index measuring the competitiveness. It was aimed to make predictions for the future according to the upcoming results.

This study consists of four sections. In the first section literature scaning was carried out. In the second section data set and method was presented and explained. In the third section there are analysis results. In the fourth section a general evaluation will be carried out and recommendations will be made.

Literature Review

Theoretical foundations of international competitiveness date back to the period of classical economics. There are several numbers of approaches such as the Theory of Competitive Advantage Approach, Double Diamond Approach, and Nine Factors Model Approach for international competitiveness. The issues such as the definition of international competitiveness concept, assessment, explaining the determiners for this concept and stating the economic relations of it ranges according to the chosen approach. So there is no generally accepted approach for international competitiveness (Kibritçioglu, 1996:112). In theoretical context, there is no certain consensus about international competitiveness and the factors affecting it and also it is not possible to say that the explanations are complementory each other (Yaprakli, 2011).

The concept of international competitiveness is one of the significant facts of the globalization process. The concept of international competitiveness in literature is handled and tried to be defined in three different ways as in firm, sector and international level (Kesbiç and Ürüt, 2004: 56-59). …

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