1. Structural Shift in Turkiye-East Asia Economic Relations: The Demise of Japan and the Rise of China and South Korea
- Author
-
Akkemik, K. Ali
- Subjects
Exports -- Economic aspects ,Foreign investments -- Economic aspects ,Global economy -- Economic aspects ,International relations -- Economic aspects ,Imports -- Economic aspects ,Protectionism -- Economic aspects ,Political science ,European Union - Abstract
Turkiye's economic relations with East Asia have gone through a significant structural shift over the last two decades. Previously, Japan dominated Turkiye's trade with East Asia and foreign direct investment inflows from East Asia to Turkiye. However, recently both South Korea and China have surpassed Japan as major trading partners of Turkiye in East Asia and caught up with Japan in foreign investments in Turkiye. The dependence of the Turkish economy on intermediate inputs from China, in particular, rose remarkably. The shift from Japan toward South Korea, and more significantly, to China in Turkiye's economic relations with East Asia reflects the changing division of labor in the East Asian region and the rise of China as a manufacturing superpower. In this analysis, we discuss the extent of this shift in Turkiye's relations in light of the ongoing talks of a proposed free trade agreement between Turkiye and Japan, the changing global trade environment due to the decoupling from China, and the increasing fragmentation of the world economy. Keywords: Economic Relations, Imports, Exports, Turkiye, East Asia, China, Japan, South Korea, Introduction The Turkish economy has rapidly integrated with the world economy since 1980, with Europe and the U.S. dominating Turkiye's international trade and foreign investment inflows for three decades. In [...]
- Published
- 2024
- Full Text
- View/download PDF