Industry Level Competitiveness and Adaptation to World Demand: An Analysis on Turkey and Selected Countries

In this paper, we examined the trade share performance of selected eighteen countries for each sub-sector with different technology intensities by using Constant Market Share analysis which allows to compare these shares with the world trade shares. The findings based on BACI trade data covering period 1995-2014 showed that most of developing countries in low-, medium-, and high-tech industries rapidly increased their market shares through their attempts called competitiveness effect. Among High-income countries, especially U.S, Japan and Germany, these trade shares have either decreased or been stable position. These two facts imply that many stages of production process in developed countries moved to developing countries due to spreading of global value chains. On the other hand, Vietnam and China, to a lesser extent, were able to improve their competitiveness in the products of which the world demand increase, and thus exhibit a strong convergence performance in total exports.