DO IMPACTS OF FACTORS AFFECTING GOODS TRADE DIFFERENTIATE FOR SERVICE TRADE? THE CASE OF TURKEY
DO IMPACTS OF FACTORS AFFECTING GOODS TRADE DIFFERENTIATE FOR SERVICE TRADE? THE CASE OF TURKEY

Summary/Abstract: As known, international trade, which can be thought as the way that individuals, organizations, and countries fulfill their needs, is a very important concept. Although, for a long time, international trade has been associated with only international trade of physical products, especially after 2000s, researchers have begun to think that there can be international trade of services which is different from international trade of goods. In this sense, both of differences among these two concepts, and factors, that possibly affect and are affected by these two concepts, became an area that requires to be understood clearly in the literature. Therefore, this research aims to analyze the relationship between the variables (globalization, foreign direct investment, informal economy, and internet technology), that are not widely studied in Turkish literature in terms of service trade, and Turkish service export. To understand the relationship among mentioned variables, cointegration analyzes was conducted for the period of 1970-2018 by using ARDL model. As a result of the analysis, it was understood that the answer to the question of whether the effects of the factors affecting the trade of goods differ for the export of services is yes based on the example of Turkey. In this direction, it has been observed that globalization has the opposite effect of what is expected. Lastly, this research provides some recommendations for policymakers.

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