아프리카ㆍ중동

Recent developments in intra industry trade (IIT) literature center on the relationships between IIT and adjustment costs which vary with changes in trade pattern. This study investigates the marginal intra industry trade (MIIT) between Turkey and Israel at the SITC 3 digit level, over the period of 1990 and 2012. It also tries to reveal the effect of Free Trade Agreement (FTA) between two countries on the changes of MIIT over time by using Brülhart’s (1994) A, B, C and Menon and Dixon’s (1997) UMCIT indices and to put out the adjustment costs in the manufacturing industry in Turkey. The results show that, FTA has little impact on the MIIT structure of trade.