THE MARKET POWER OF TURKEY'S IMPORTED TOBACCO MARKET

Abstract

Despite its high share in the taxes collected and the superiority in foreign trade, tobacco production has been regulated by special laws for many years due to the increased production of tobacco to the detriment of other agricultural products and the large number of producers. Public supervision, regulation and surveillance are still in progress despite the major changes experienced in the tobacco market due to the recent changes in legislation. Tobacco production cannot be increased because of technological insufficiency and inadequate development of research activities. As well as this, there is an increase in the demand for imported tobacco, which is relatively cheaper than domestic tobacco in the global competitive environment. This is what transforms Turkey's market position into the largest tobacco importer which was a tobacco exporting country before. The aim of this study is to calculate Turkey's market power in the tobacco import market econometrically by using New Industrial Organization method. Market power coefficient was found to be 0.37 in this study in which annual data for the period 1994-2016 were used. This result reveals that Turkey's tobacco import is not realized under perfect competition conditions and the firms display behaviors in oligopolistic structure.

Keywords

• pazar gücü
• ithal talep
• tütün ürünleri
• pazar gücü
• ithal talep
• tütün ürünleri