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Turkey - Africa trade: A gravity model estimation of determinants

Author

Listed:
  • Abdulkadir Wahab AMAN

    (Department of Economics, Yildiz Technical University, Istanbul, Turkey.)

  • Feride GÖNEL

    (Department of Economics, Yildiz Technical University, Istanbul, Turkey.)

  • Hasan KARADUMAN

    (Department of Economics, Yildiz Technical University, Istanbul, Turkey.)

Abstract

This study investigates the key determinants of trade between Africa and Turkey by using the gravity model of international trade. The major objective is to identify the core socio-cultural and macroeconomic factors of bilateral trade between both sides. Poisson – Pseudo-Maximum Likelihood Estimator is used in order to efficiently test the impact of many dummy variables and fixed effects. The results illustrate that there are geographic, socio-cultural and macroeconomic factors in the African economies and Turkey’s side. African countries near to Turkey, sharing similar religion and recorded higher economic growth rates in the last couple of decades have better bilateral trade with Turkey than the others. Besides, economic freedom improvements in these countries have positive relationship with their bilateral trade. On the other hand, improvement in corruption level of Turkey, increasing its ODA donation and opening commercial consulates in African countries are the positive factors of its bilateral trade with Africa. However, there is no statistical evidence to say Turkey’s trade with Africa is for the purpose of natural resources.

Suggested Citation

  • Abdulkadir Wahab AMAN & Feride GÖNEL & Hasan KARADUMAN, 2017. "Turkey - Africa trade: A gravity model estimation of determinants," Journal of Economics Library, KSP Journals, vol. 4(4), pages 561-571, December.
    • Handle: RePEc:ksp:journ5:v:4:y:2017:i:4:p:561-571
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    References listed on IDEAS

    as
    1. Enwere, Chigozie & Yilmaz, Mesut, 2014. "Turkey’s Strategic Economic Relations with Africa: Trends and Challenges," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 1(2), pages 216-230.
    2. Narayan, Seema & Nguyen, Tri Tung, 2016. "Does the trade gravity model depend on trading partners? Some evidence from Vietnam and her 54 trading partners," International Review of Economics & Finance, Elsevier, vol. 41(C), pages 220-237.
    3. van Bergeijk,Peter A. G. & Brakman,Steven (ed.), 2010. "The Gravity Model in International Trade," Cambridge Books, Cambridge University Press, number 9780521196154.
    4. Yu, Miaojie, 2010. "Trade, democracy, and the gravity equation," Journal of Development Economics, Elsevier, vol. 91(2), pages 289-300, March.
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    More about this item

    Keywords

    Turkey; Africa; Foreign Trade; Gravity Model.;
    All these keywords.

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F19 - International Economics - - Trade - - - Other

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