Value-added content of exports consistent with imported intermediates : a quantitative analysis

Abstract

In this thesis, we estimate domestic content of Turkish manufacturing exports by assuming separate input-output coe cients for processing and ordinary exports, and using rm-level business and trade data from the Turkish Statistics Institute. To do so, we adopt the methodology proposed by Koopman et al. 2012) and assess Turkey's export performance under the lights of new valueadded estimates over the 2005-2011 period. On the methodological front, this thesis contributes to the literature by estimating the domestic content of exports using rm-level data and distinguishing between ordinary and processing trade. On the empirical side, it presents the rst thorough analysis of the domestic content of Turkish manufacturing exports and how it varies according to various country, industry and rm characteristics. We nd that value-added share in manufacturing exports resemble a hump-shaped trend except for Textile and Leather industry, reaching its peak during the Great Trade Collapse. We also nd that the domestic content of export increase with GDP and per capita income of partners.