Competitive Analysis of the Turkish Republic of Northern Cyprus

As the world has transformed into a global village, the borders delineated between countries and regions, as well as the protectionist policies adopted by various nations, have gradually been replaced by free trade. Exports, which are the most significant supporter of economic development, provide countries with the opportunity for economic rise along with the competitiveness of their products. Along with globalization, advancements in technology have enabled businesses, countries, and investors to access new markets and share their natural resources, knowledge, and capital across borders, without being confined to their domestic markets. These objectives may have cost-reducing effects such as adopting economies of scale by increasing production capacity, producing in countries with cheaper labor force, and reducing production and transportation expenses by investing in countries where raw materials are close; It can be production and market-oriented, such as appealing to large masses and different cultures and increasing the amount and variety of products. By adopting appropriate policies and competitive strategies, countries can increase their economic position in the world and become the preferred country for investors with sustainable economic growth. Therefore, the competitive advantages of countries have become significantly more noteworthy with global trade. Competitiveness is explained as the capacity of businesses to compete in a certain market, to enter new and alternative markets through exports, to increase market share, and to achieve sustainable growth and profit. Competitiveness is an output indicator of export, growth, and profit-making capacity. In short, competitiveness provides companies or countries with high and sustainable income and the ability to produce products and services required by international markets. The economy of the Turkish Republic of Northern Cyprus tends to constantly grow. However, from time to time the country's economy runs a foreign trade deficit. It tries to close this foreign trade deficit with tourism and education revenues, which are significant service items. It is vital to identify the products that have a competitive advantage in the international markets of the Turkish Republic of Northern Cyprus. Therefore, this became the dominant actor in the creation of the study. This study aims to determine and analyze the international competitiveness of 10 products that are significant in TRNC's exports for the years 2017-2022. In this regard, world and TRNC export and import data were used to calculate international competitiveness indices. In this context, the Revealed Comparative Advantage Index (RCA) and Vollrath's index Relative Export Advantage Index (RXA) were used in the study. According to the study results, it has been realized that the products that are significant in the competitiveness of the Turkish Republic of Northern Cyprus belong to the agricultural sector. In this context, the study will offer suggestions and policies to increase the goods exports of the Turkish Republic of Northern Cyprus, diversify export products ,and expand the export market.