Intra Industry Trade and R&D Intensity: An Empirical Assessment for Turkey

Intra industry trade reflects monopolistic competition amongst industries, hence shows economics of scale in the economy. In this paper, a different framework put forth for estimating to monopolistic competition, intra industry trade within R&D framework for the 14 subsections of the manufacturing industry in Turkey between 1990 and 2010. Obtained results show that intra-industry trade supported by R&D intensity growth in the lagged term in Turkey between 1990 and 2010.