The Effects of Free Trade Agreement on Intra-Industry Trade (A Case Study of Textile Sector in Turkey)

This research studies the effects of Free Trade Agreements on Intra-Industry Trade. The textile sector of Turkey which has an important role on Turkey`s external trade is based on while the effects of Free Trade Agreement on Intra-Industry Trade are studied. The textile sector has been examined in three subgroups as classified by SITC within the 1996-2003 time internal. These subgroups are SITC-26 which is made up of textile fibers (other than wool tops) and their wastes, SITC-65 made up of textile yarn, fabrics, made up articles, n.e.s related products and SITC-84 made up of apparel and clothing accessories. As a consequence of all studies done, it can be said that agreements have a positive effect on Intra-Industry Trade based on textile sector. And it also can be said that this effect is more intense on SITC-65 products.