The Bank’s new business model is based on the objective of strengthening the competitiveness of member countries in strategic industries to become comparatively advantageous in creating and integrating with value chains. A new development model emphasizing value chain based approach was piloted in Turkey by Escarus.
Throughout the project Escarus tried to find out how Turkey can integrate into global GVCs and adapt to change by global circumstances through investments in key sectors. To understand the formation of GVCs in details, Escarus undertook a comprehensive analysis of the Turkish industry by relying on a huge data set. Since the agreement requires the development of a prioritization methodology based on several criteria by considering natural, dynamic, surplus and spillover potential, several data sources were scrutinized, and analyses were conducted so as to attain internal consistency.
The following indicators capturing various industrial characteristics were estimated/calculated at the firm level to analyze industries with NACE 4-digit classification: TFP growth rate, TFP differences between large and small-sized firms, returns to scale, the share of foreign firms, the share of exporters, number of firms, firm size, relative wages, labour productivity, and capital intensity. The following indicators were used for the industries with NAICS classification: product complexity, revealed comparative advantage, the share in world import, export and concentration, export value, import value, trade balance, and global demand projections.
At the last stage, Escarus team developed five reports in a way to cover both preliminary GVC analysis and the initial mapping of the value chains in the selected sectors.