Dependency on Imported Intermediates in Turkey: Two Different IO Approach
Dependency on Imported Intermediates in Turkey: Two Different IO Approach

Summary/Abstract: Import dependency on intermediates is an important problem in the Turkish economy. Therefore it is subject to many empirical studies. These studies mostly depend on Input Output (IO) tables. In this study, the import requirement ratio (IRR) are calculated from the 2018 IO Table for Türkiye. Also, the IRR values are weighted by the value-added percentage of the sectors (IRR-VA) and it is compared with the results of the pure IRR values. It is seen that most of the sector rankings change significantly. According to the pure IRR calculations, the sectors that are most dependent on the imported intermediates are Coke and refined petroleum products, Electrical equipment, Motor vehicles, trailers and semi-trailers, Rubber and plastics products, Chemical and chemical products, and Machinery and equipment, nec. On the other hand, IRR-VA calculations result in Construction, Electrical equipment, Transport, storage and communications, Coke and refined petroleum products, Food products, beverages and tobacco, Textiles, textile products, leather and footwear sectors. This indicates that a careful analysis is needed when it comes how to determine the import dependency on intermediates.

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