The Status of Commodity Trade between Iran and Turkey in the Global Value Chain Perspective

According to the literature on the "global value chain", more developed countries export final products more, including consumer and capital goods, and less developed countries export intermediate goods more. Turkey is one of Iran's partners in commodity trade, and this article deals with the transformation of Iran-Turkey trade in the global value chain (GVC) over the past two decades. The paper shows that Turkey's gains in GVC has been increasing via its expansion in exporting of final products. Iran has not only gained less from the GVC in comparison with Turkey in the export of intermediate and final goods, but in comparing with the average world Iran has not. Also, Iran's trade with Turkey in recent years has shown that Iran exports products of "manufacture of chemicals and chemical products" industry which mainly includes intermediate goods to Turkey. Turkey processes these products to the final goods through " manufacture of pharmaceuticals, medicinal chemical and botanical products " and " manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparation" industries, which have high technology level, and then exports these goods to the world, including Iran. Therefore Turkey gains from the GVC more via this way.