University of agribusiness and rural development, Fiscal policy, globalization and economic growth: sustainable development challenges and perspectives

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Derya Ilkay Abdikoglu, Gökhan Unakitan

Last modified: 2020-02-26


Food and agriculture are essential for people to survive and the contribution of them to national income is of great importance. It is strategically important for countries both to decrease external dependence by increasing domestic production and to earn income by exporting agricultural products. In addition, export value, which is the most important item of foreign trade, is one of the most important macroeconomic concepts in terms of economic growth, development and welfare increases of countries.

Revealed Comparative Advantage (RCA) coefficients are calculated as the ratio of the country's total product/sector exports to total exports divided by the ratio of exports of the same product/sector to total exports in the reference area. RCA coefficients which can also be expressed as Balassa Index; compares the country's specialization in one product/sector with the specialization of the other country or the reference field. According to Balassa Index, if the export of a particular product / product group of a country is higher than the average export of the reference area in that product / sector, that country is defined as specialized in the export of that product / sector.

In this study it is aimed that to compare Turkey and the EU countries' export values in agricultural products basis. Comparative advantage and competitiveness of agricultural products of Turkey and the EU between 2008 and 2017 were discussed by using Balassa Revealed Comparative Advantages Index (RCA). EU-28 was taken as the reference area in the study.

According to results, there is no major changes or fluctuations in the competitiveness of Austria, Belgium, Cyprus, Germany, Sweden and UK in the last ten years. While there is a reduction in Denmark, Estonia, France and Ireland's competitiveness, Italy and Turkey have increased their competitiveness. There are great fluctuations in Bulgaria's competitiveness in the last 10 years.

In 2017, there is a competitive disadvantage in Austria, Cyprus, Czech, Estonia, Finland, Germany, Ireland, Luxembourg, Malta, Slovakia, Slovenia, Sweden and the UK. Belgium, Bulgaria, Croatia, Denmark, France, Greece, Hungary, Italy, Latvia, Lithuania, Netherlands, Poland, Portugal, Romania, Spain and Turkey have a competitive advantage.


Balassa Index, Revealed Comparative Advantages Index, Competitiveness, Agricultural Export