Evaluation of Comparative Advantages of Trade in Service in Türkiye with RCA and TBI Indices

Abstract

Technological developments in the last quarter century and the increase in the service sector in international trade enable schools to develop their foreign trade policies for service trade. To achieve a competitive advantage in this extended family service trade, it is necessary to determine the countries' comparative advantages. To choose the comparative advantage of Turkiye's service sector in this country between 2013-2021, the TBI index, which was used by RCA and supported the index results, was also included in the study. The data obtained from the survey show that Turkiye has a comparative advantage in maintenance and repair, transportation, travel, insurance and pension, and government goods and services in the relevant period. However, it is not generally observed during the elapsed time in government goods and services and insurance and pension services. On the other hand, while Turkiye has a net exporter position in manufacturing services on physical inputs owned by others, transportation, travel, and construction services, it is also a net exporter in insurance and pension, financial services, charges for the use of intellectual property, telecommunications, computer, and information processing and government goods and services during the relevant period—Importer position. However, some services remain net importers or exporters throughout the period. These results are more sensitive than macro and micro environmental conditions.
 Key Words: Trade in Services, Comparative Advanteges, RCA Index, TBI Index, Türkiye
 JEL Classification: F14