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Arab Spring vs. Zero Problems Policy Impact of the Arab Spring on Trade Expansion of Turkey

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  • Engin Sorhun

    (Istanbul Dogus Univesity, Faculty of Business and Administrative Sciences, 34722, Istanbul, Turkey & University of Strasbourg, Bureau de l’Economie Théorique et Appliquée, 67085, Strasbourg, France)

Abstract

Although Turkey has historically concentrated its trade with the European Union (EU) it has diversified its trade markets with the neighbouring regions and different group of countries during the last decade. Among them, Arab countries have come into prominence. Especially, following the “zero problems with neighbours†policy (ZPN), pursued by Turkey since 2002, the trade volume with the Middle Eastern neighbours has increased faster than that with its traditional partners. Nevertheless so called “Arab Spring†has started to manifest its effects on this trend. It deteriorates not only the economies of the concerned countries but also Turkey’s trade expansion. This paper aims: (i) to test through a gravity model the positive impacts of the ZPN policy and the negative impact of the Arab Spring on the trade expansion with the Spring Countries; and (ii) to reveal the positive impact of the policy change and the negative impact of the uprising movements on the realization of trade potential by Turkey in the Spring Countries

Suggested Citation

  • Engin Sorhun, 2013. "Arab Spring vs. Zero Problems Policy Impact of the Arab Spring on Trade Expansion of Turkey," International Journal of Research in Business and Social Science, Society for the Study of Business & Finance, vol. 2(4), pages 21-36, October.
  • Handle: RePEc:rbs:ijbrss:v:2:y:2013:i:4:p:21-36
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