The economic relations between Turkey and
Japan have recently been on the decline. This
is partly a reflection of the ongoing economic
transformation in the East Asian region,
where China and Korea have caught up with
Japanese industries and technology in most
sectors. Korean and Chinese firms have
gained competitive power over Japanese firms,
which have traditionally been champions of
manufacturing. Partly as a consequence of
the ailing Japanese economy, Turkish industry
has recently turned to Korea and China as
sources of industrial supplies. This paper shows
the extent to which the Turkish economy has
become more dependent on industrial inputs
from Korea and China at the expense of the
declining importance of Japan. This is discussed
in conjunction with the ongoing free trade
negotiations between Turkey and Japan.