Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). Find Out

Increasing Turkey's Export Competitiveness

August 27, 2014


World Bank Group

A new World Bank report shows that in the past decade Turkey has increased its export competitiveness, but to reach the 2023 export goals, it needs to upgrade its exports and focus on productivity.

Arçelik is one of Turkey’s most successful enterprises, manufacturing millions of home appliances each year at factories it owns and operates across the nation and abroad.

“75 percent of our production is for exportation and our main markets are west Europe, our biggest market is UK, France, Holland Germany and Spain,” says Mursel Tellici, Maintenance Team Leader at one of Arçelik’s busiest plants based in Istanbul.

Supporting and further boosting such export competitiveness are among the main objectives of the World Bank’s Country Economic Memorandum, or CEM, for Turkey.


" 75% of our production is for exportation and our main markets are west Europe, our biggest market is UK, France, Holland Germany and Spain.  "

Mursel Tellici

Maintenance Team Leader at one of Arçelik’s busiest plants based in Istanbul

Image

In order to benefit from shifts in global demand and better confront growing competition from other low-cost producers, Turkey needs to move up on global value chains.


The CEM shows that Turkey has already increased its export competitiveness, thanks to a shift in the export basket towards medium-tech and more sophisticated products, accompanied by higher export quality. 

“At the end of the assembly lines we have quality controls. A hundred percent of our washing machines are tested by automatic control units,” explains Rasim Hasmet Cizmeci, production manager at Arcelik’s Istanbul plant.

The CEM advises that, in order to benefit from shifts in global demand and better confront growing competition from other low-cost producers, Turkey needs to move up on global value chains. It can do so by attracting more pre-production design and R&D, for example, as well as through more post-production marketing and specialized logistic activities.

This will require a multi-faceted approach that targets increased productivity. The CEM makes several recommendations on how to do so, including focusing policy on attracting more FDI, promoting innovation (in part by increasing business research and development investment), and improving links between research and business applications.

In conclusion, the World Bank’s CEM for Turkey recommends upgrading the skills of Turkey’s existing work force and of new work force entrants, and improving access to long-term financing with a view towards unlocking the potential of the country’s Small and Medium Enterprises.


Image

Turkey has already increased its export competitiveness, thanks, in part, to higher export quality.