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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.

Suggested Citation

  • Erol H. Cakmak & Hasan Dudu, 2014. "Economic Growth in the Euro-Med Area through Trade Integration: Focus on Agriculture and Food – The case of Turkey," JRC Working Papers JRC84201, Joint Research Centre (Seville site).
  • Handle: RePEc:ipt:iptwpa:jrc84201
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    File URL: http://publications.jrc.ec.europa.eu/repository/handle/JRC84201
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    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 Working Papers JRC84800, Joint Research Centre (Seville site).
    2. Karaca, Orhan & Philippidis, George, 2008. "Turkey’S Accession To The European Union: Implications For Agricultural Sectors," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6398, European Association of Agricultural Economists.
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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 Working Papers JRC84800, Joint Research Centre (Seville site).
    2. Tuba Pekkirbizli & Mohamad Isam Almadani & Ludwig Theuvsen, 2015. "Food safety and quality assurance systems in Turkish agribusiness: an empirical analysis of determinants of adoption," ECONOMIA AGRO-ALIMENTARE, FrancoAngeli Editore, vol. 17(3), pages 31-55.
    3. 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 Working Papers JRC84801, Joint Research Centre (Seville site).

    More about this item

    Keywords

    Trade Liberalization; Dynamic CGE Model; Agriculture; Turkey;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade

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