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Economic Growth in the Euro-Med Area through Trade Integration: Focus on Agriculture and Food – The case of Turkey

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Abstract

In this study, we analyse the effects of trade liberalization, world price increase of basic staple and productivity growth in agricultural activities on Turkey by using a dynamic CGE model calibrated to 2008 data. The simulation results suggest that Turkish economy is capable of accommodating the adverse effects of trade liberalization. There are significant welfare gains if trade liberalization is accompanied by the CAP payments in the accession scenario. Trade policy turns out to be a strong instrument to stabilize the domestic prices and avoid the adverse effects of world price increase. Productivity increase in agri-food production has prominent effects on welfare and trade.

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File URL: http://publications.jrc.ec.europa.eu/repository/handle/111111111/30676
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Bibliographic Info

Paper provided by Institute for Prospective and Technological Studies, Joint Research Centre in its series JRC-IPTS Working Papers with number JRC84201.

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Length: 63 pages
Date of creation: Jan 2014
Date of revision:
Handle: RePEc:ipt:iptwpa:jrc84201

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Keywords: Trade Liberalization; Dynamic CGE Model; Agriculture; Turkey;

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Cited by:
  1. Aikaterini Kavallari & Marie-Luise Rau & Martine Rutten, 2013. "Economic Growth in the Euro-Med Area through Trade Integration: Focus on Agriculture and Food. Regional impact analysis," JRC-IPTS Working Papers JRC84800, Institute for Prospective and Technological Studies, Joint Research Centre.
  2. Mohamed Ben Abdallah & Abdelkader Ait El Mekki & Gamal Siam, 2013. "Economic Growth in the Euro-Med Area through Trade Integration: Focus on Agriculture and Food. North Africa case studies - Egypt, Morocco, Tunisia," JRC-IPTS Working Papers JRC84801, Institute for Prospective and Technological Studies, Joint Research Centre.

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