The Impact of a Customs Union between Turkey and the EU on Turkey's Exports to the EU

Universitätsmedizin Göttingen, Göttingen, Lower Saxony, Germany
JCMS Journal of Common Market Studies (Impact Factor: 1.31). 02/2007; 45(09):719-743. DOI: 10.1111/j.1468-5965.2007.00728.x
Source: RePEc

ABSTRACT This article investigates Turkey's sectoral trade flows to the EU based on panel data from the period 1988 to 2002. Turkey's 16 most important export sectors are analysed. Emphasis is placed on the role of price competition, EU protection and transport costs in the export trade between Turkey and the EU. The empirical model used is an extended version of the gravity model. This study is also a contribution to the current discussion of whether Turkey should be granted full EU membership or a privileged partnership with the EU, which for Turkey would mean improved access to the EU market for its products, among other benefits. Our investigation focuses on the latter policy outcome: the impact of deepening the customs union between Turkey and the EU and applying the common agricultural policy (CAP) to Turkish agricultural exports. To this end, the impact of the 1996 customs union covering most industrial goods and processed agricultural goods, is evaluated on a sectoral level. We also perform simulations to quantify the impact of the potential inclusion of agricultural goods, as well as iron and steel and products thereof, into the full customs union between Turkey and the EU which is still to come. Copyright (c) 2007 The Author(s); Journal compilation (c) 2007 Blackwell Publishing Ltd.

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    • "Reel dış gelir (+), reel kur (-) Rodriguez ve Samy (2003) 1950-1998 ABD İhracat/GSYH Zaman serisi (yapısal kırılmalarla) Çalışılan saat, iş kazalarının sayısı (+), sendikalaşma oranı (-), reel faiz oranı (borç verme oranı-TÜFE) Lehman vd. (2007) 1988-2002 Türkiye'nin AB ülkelerine ihracatı Türkiye'nin 16 HS sektöründe AB ülkelerine ihracatı Panel-yerçekimi Ticaret ortağının reel geliri (+), ticaret ortaklarının kişi başı gelirlerinin farlı (karışık), reel kur (sektöre özgü korumaları göz önünde bulundurarak hesaplanmış)(-), Türkiye'nin AB dışı rakiplerinin reel kuru ("
    06/2014; 21(21). DOI:10.17233/se.86475
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    • "However, the other side of the coin is equally important, as the agreement is based on the principle of reciprocity. Evidence indicates that in the short-run certain sectors would be disadvantaged, but in the long run certain benefits would be realized (Nowak-Lehmann et al., 2007). That is, the customs union is envisaged to have a positive long-term impact on the Turkish economy in terms of increased competitiveness and stability. "
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    ABSTRACT: Purpose – The purpose of this paper is to consider competitive strategy choices of Turkish manufacturing firms operating in EU markets and their action programs in responding to emerging opportunities and threats led by recent developments in Turkey-EU relations. Design/methodology/approach – Drawing on a sample of 79 large size Turkish manufacturing firms, the relative use of competitive strategies and action programs by sample firms operating in EU markets was examined by undertaking both descriptive and multivariate statistical analyses. Findings – The most heavily used competitive strategy choices were found to be growth strategies aiming to extend current product lines with related products through enabling standardization and technology sharing. The highest ranked action programs implemented by Turkish manufacturing firms focused on enabling integration. The findings of the study indicated that the relative use of competitive strategy options varied to a certain extent between the market entry modes of Turkish firms (equity based and non-equity based) serving the EU markets. However, no variation was found between the implementation level of action programs and the choice of a particular market entry mode by sample firms. Research limitations/implications – While the variation in the implementation level of several of the competitive strategies appears to be readily justifiable, the reason for the variation is not always clear. It is also necessary to extend the analysis to consider the relative use of strategy options and action programs along with other variables, such as the governance and transaction cost variables. Originality/value – Based on a sample of large size manufacturing firms, this study is the first attempt to identify, classify and explain the key competitive strategy choices and action programs implemented by Turkish firms in EU markets.
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    ABSTRACT: This study claims that the political area Turkiye historically keeps can offer some new opportunities in terms of trade field. The countries have been recently benefiting from the affluence that merchandise prices yield and direct investments are residing around Turkiye. Especially through managing her trade potential in logistics and agricultural products, superiority in services sector and relations with EU, foreign trade policy of Turkiye aiming newly developing eastern countries via orientation and transformation strategy should be renewed. Ultimately, Turkiye can take part among large economies of the world and provide new prospective opportunities with the economic power she would gain in her existence area.
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