This article deals with the competitiveness strength of Turkey and the EU 27 by using the
Porter's Diamond model. 13 independent variables determined for 4 factors of the model and 4
independent variables determined with mean of these 13 variables were used in 2 separate models.
These variables are the ones used in Global Competitiveness Strength Index by the WEF and can
represent the factors of the diamond model. In the first model, a positive impact of local supplier
quality and cooperation in laboremployer relations over foreign trade, while the variables of
degree of customer orientation, buyer sophistication, state of cluster development and value chain
breadth revealed a negative impact over foreign trade. In the second model, while a positive impact
of factor conditions over trade performance, demand conditions and related and supporting indus
tries revealed a negative effect over trade performance. Firm structure, strategy and competitive
ness revealed insignificant impact over trade performance.
Keywords: panel data analysis, foreign trade performance, Diamond Model, competitiveness.