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Turkish Delight – Does Turkey’s accession to the EU bring economic benefits?

  • Arjan M. Lejour
  • Ruud A. de Mooij

We explore the economic implications of the possible Turkish accession to the European Union. We focus on three main changes associated with Turkish membership: (i) accession to the internal European Market; (ii) institutional reforms in Turkey triggered by EU-membership; and (iii) migration in response to the free movement of workers. Overall, the macroeconomic implications for EU countries are small but positive. European exports increase by around 20 percent. Turkey experiences larger economic gains than the EU: consumption per capita is estimated to rise by about 4 percent as a result of accession to the internal market and free movement of labour. If Turkey would succeed in reforming its domestic institutions in response to EU-membership, consumption per capita in Turkey could raise by an additional 9 percent. These benefits would spill over to the EU.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2004/wp-cesifo-2004-05/cesifo1_wp1183.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1183.

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Date of creation: 2004
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Handle: RePEc:ces:ceswps:_1183
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  1. Selahattin Bekmez, 2002. "Sectoral Impacts of Turkish Accession to the European Union: A General Equilibrium Analysis," Eastern European Economics, M.E. Sharpe, Inc., vol. 40(2), pages 57-84, March.
  2. Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 1997. "Economic implications for Turkey of a Customs Union with the European Union," European Economic Review, Elsevier, vol. 41(3-5), pages 861-870, April.
  3. Henri L. F. de Groot & Gert-Jan Linders & Piet Rietveld & Uma Subramanian, 2004. "The Institutional Determinants of Bilateral Trade Patterns," Kyklos, Wiley Blackwell, vol. 57(1), pages 103-123, 02.
  4. Harry Flam, 2003. "Turkey and the EU: Politics and Economics of Accession," CESifo Working Paper Series 893, CESifo Group Munich.
  5. Arjan Lejour & Ruud de Mooij & Richard Nahuis, 2001. "EU enlargement: economic implications for countries and industries," CPB Document 11, CPB Netherlands Bureau for Economic Policy Analysis.
  6. Sjed Ederveen & Joeri Gorter & Ruud de Mooij & Richard Nahuis, 2003. "Funds and Games: The Economics of European Cohesion Policy," Occasional Papers 03, European Network of Economic Policy Research Institutes.
  7. Ruud de Mooij & Paul Tang, 2003. "Four futures of Europe," CPB Special Publication 49, CPB Netherlands Bureau for Economic Policy Analysis.
  8. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760 Elsevier.
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