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Intra industry trade is goods and services with the same or similar factor intensity in production or, two-way trade of goods and services that are close substitutes for each other as the demand side. There are two main categories of intra-industry trade: horizontal and vertical intra-industry trade. Intra-industry trade in similar products with differentiated varieties is horizontal intra-industry trade, the intra-industry trade of differentiated goods, which differ in terms of quality and price, is vertical intra trade. The main objectives of this paper are to explain the extent of vertical and horizontal intra-industry trade in the Turkey’s foreign trade with the world in the selected manufacturing industry sectors. İn this study, using Abd-el-Rahman (1991) and Hine, Greenaway and Milner(1995) approach of Intra-ındustry trade decomposition methods has been analyzed the extent and development of vertical and horizontal intra-industry trade In the selected manufacturing industry sub-sectors between Turkey and The World for the period 2010:01-2016:11 by unit value indices.

Vertical and Horizontal Intra-Industry Trade between Turkey and the World in the Selected Manufacturing Industry Sub-Sectors