Close panel

  • Home
  • Publications
  • Who we are
  • Big Data
  • Forecasts
    Searcher

    Published on Friday, March 7, 2025

    Export Concentration and Economic Complexity in Türkiye and Mexico

    Summary

    We integrate our findings in export concentration, value added in exports, and economic complexity for Türkiye and Mexico. While both countries have increased their complexity through time, targeted fiscal incentives directed towards competitive industries may help attain more complex products in exports.

    Key points

    • Key points:
    • Our calculations for export concentration in destination and product dimensions show diverging paths for Türkiye and Mexico: Mexico has steadily increased its export concentration both on geographical and product terms, whereas Turkish exports have become more diversified.
    • Türkiye portrays a more balanced position regarding forward (outstanding domestic input) and backward linkages (prominent foreign input) in global value chains. In contrast, the backward linkage in Mexico's exports exceeds the forward linkage more than four times.
    • The Product Spaces of the two countries, generated with the economic complexity methodology, reveal that Mexico's exports are concentrated on products with relatively higher complexity scores, while Türkiye's export composition is more scattered on the product space, exhibiting concentration in low-complexity products, especially in the textile and agriculture sectors.
    • Higher export concentration is associated with lower economic complexity scores in the case of Türkiye, which becomes more substantial in the "destination" dimension of export concentration. In the case of product concentration, the relationship between concentration and complexity is looser for both countries.
    • Regarding fiscal incentive schemes supporting businesses, Mexico's tax incentive programs focus on high-complexity products in the chemicals and machinery sectors with revealed comparative advantage. Even though Türkiye's policy incentives are more concentrated on products with lower complexity gain, there has recently been a higher focus on regional investment incentive schemes and products in metalworking and electrical machinery with higher complexity scores.

    Geographies

    Authors

    Diego López BBVA Research - Senior Economist
    Gül Yücel BBVA Research - Senior Economist

    Documents and files

    Presentation (PDF)

    Export concentration and economic complexity in Türkiye and Mexico

    English - March 7, 2025

    New comment

    Be the first to add a comment.

    Load more

    You may also be interested in