IDEAS home Printed from
   My bibliography  Save this article

Customs Union and Competitiveness of Turkish Exports in the EU Market: A Dynamic Shift-Share Analysis


  • K. Ali Akkemik

    (Baskent University, Department of Economics)


When Turkey signed the Customs Union (CU) agreement with the EU in 1996 there were doubts about the costs and benefits of the CU with regards to Turkey’s foreign trade and industrial production. Theoretically, the CU helps improve efficiency by stimulating productivity gains in the tradable sectors and via technological gains due to spillover effects. It is of utmost interest to examine whether such expectations were materialized for Turkey. This article examines the changes in major Turkish exports destined to the EU market and determinants of competitiveness using dynamic shift-share analysis for the period 1987–2006. In this method, the competitiveness of Turkish products is examined vis-à-vis her competitors in the EU market. The results of the dynamic shift-share analysis show that Turkey’s competitive position has only partially improved. The results demonstrate that Turkey’s competitive position improved in textiles, iron and steel and automotive exports, and deteriorated in technologically more advanced manufacturing exports. The major determinants of this competitive position are found not to be price-related factors but “real” factors, such as productivity. The article concludes that potential benefits from a customs union have not yet materialized for major Turkish exports.

Suggested Citation

  • K. Ali Akkemik, 2011. "Customs Union and Competitiveness of Turkish Exports in the EU Market: A Dynamic Shift-Share Analysis," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 3(2), pages 247-274, May.
  • Handle: RePEc:emf:journl:2011b-5

    Download full text from publisher

    File URL:
    File Function: File-Restriction Access to full text is restricted to subscribers.
    Download Restriction: no

    References listed on IDEAS

    1. Huang, Wenyong & Yu, Huachun & Wang, Fuying & Li, Guanchong, 1997. "Infant mortality among various nationalities in the middle part of Guizhou, China," Social Science & Medicine, Elsevier, vol. 45(7), pages 1031-1040, October.
    2. Asian Development Bank & World Bank & Japan Bank for International Cooperation, 2005. "Connecting East Asia : A New Framework for Infrastructure," World Bank Publications, The World Bank, number 7267.
    3. Shahidur R. Khandker & Zaid Bakht & Gayatri B. Koolwal, 2009. "The Poverty Impact of Rural Roads: Evidence from Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 57(4), pages 685-722, July.
    4. Kalaitzidakis, Pantelis & Kalyvitis, Sarantis, 2004. "On the macroeconomic implications of maintenance in public capital," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 695-712, March.
    5. Marianne Fay & Mary Morrison, 2007. "Infrastructure in Latin America and the Caribbean : Recent Developments and Key Challenges," World Bank Publications, The World Bank, number 7179.
    6. Harpaul Alberto Kohli, 2013. "Infrastructure Needs for a Resurgent Latin America," Book Chapters,in: Harinder Kohli & Claudio Loser & Anil Sood (ed.), Latin America 2040 — Breaking Away from Complacency: An Agenda for Resurgence, chapter 7, pages 229-238 Emerging Markets Forum.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Türkcan, Kemal, 2014. "Investigating the Role of Extensive Margin, Intensive Margin, Price and Quantity Components on Turkey’s Export Growth during 1998-2011," MPRA Paper 53292, University Library of Munich, Germany.
    2. repec:sae:fortra:v:52:y:2017:i:4:p:219-232 is not listed on IDEAS
    3. Natalya Ketenci, 2017. "The Effect of the European Union Customs Union on the Balance of Trade in Turkey," Foreign Trade Review, , vol. 52(4), pages 219-232, November.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:emf:journl:2011b-5. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael Whelan). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.