ABSTRACT: This study identifies latent comparative advantages (LCA) of the Turkish economy in China under the Belt and Road Initiative (BRI) China-Central West Asia economic corridor. The LCA of Turkey is anticipated to increase the export volume of Turkey in China, resulting in a decline in Turkey’s foreign trade deficit with China. The growth identification and facilitation framework proposed by new structural economics is implemented with crucial modifications, including PRODY and EXPY calculations and comparisons of EXPY and some product space indicators, to pick the LCA of Turkey in China. Benchmark countries are chosen from BRI's China-Central West Asia economic corridor owing to their similar transportation routes and infrastructure investment by China and themselves. Comparing the Turkish economy to its benchmark countries regarding export diversification reveals that Turkey exhibits LCA in several manufacturing commodities, including machinery and mechanical appliances, loudspeakers, and fire extinguishers. LCA's binding constraints, barriers, and obstacles are examined to facilitate LCA production. The policy recommendations and their instruments are suggested to ease LCA production regarding the determined LCA's binding constraints, barriers, and obstacles.
Keywords: New Structural Economics, Latent Comparative Advantage, Turkish Economy, Growth Identification and Facilitation Framework, Product Space Methodology, Belt and Road Initiative.