An investigation on competitiveness in services: Turkey versus European Union

Purpose – The aim of this study is to investigate the competitiveness of the selected services in Turkey in comparison with the EU and the selected EU countries based on three comparative advantage indices. Design/methodology/approach – Three different revealed comparative advantage indices were utilised in a combined way. Import and export figures of six service sectors were taken into account for the period of 2000-2010. The selected services are: transportation, travel, construction, financial services and insurance, communications and IT services, and personal, cultural and recreational services. Consistency of the results was achieved through correlation analyses. Findings – Strong comparative advantages exist for Turkey in construction, tourism and transportation sectors. Although Turkish financial and insurance and communication and computer-information sectors appear to be weak compared to EU, there is a substantial potential for improvement. Originality/value – A detailed comparative investigation of services' competitiveness for Turkey was provided. The policy decision makers in Turkey and in Europe's selected countries can utilise the findings and recommendations of the study for projection of the investigated sectors.