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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.

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  • 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 Research Reports JRC84201, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc84201
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    1. Grethe, Harald, 2005. "Turkey’s accession to the EU: what will the Common Agricultural Policy cost?," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 54(02), pages 1-10.
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    3. Arjan Lejour & Ruud de Mooij & Clem Capel, 2004. "Assessing the economic implications of Turkish accession to the EU," CPB Document 56, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2014. "Economic implications for Turkey of a Customs Union with the European Union," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 16, pages 395-404, World Scientific Publishing Co. Pte. Ltd..
    5. Fellmann, T. & von Leeuwen, M. & Salamon, P., 2012. "EU enlargement to Turkey: Potential impacts on agricultural markets and how they are shaped by changes in macroeconomis conditions," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 47, March.
    6. 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 Research Reports JRC84800, Joint Research Centre.
    7. 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.
    8. Felicitas Nowak‐Lehmann & Dierk Herzer & Inmaculada Martinez‐Zarzoso & Sebastian Vollmer, 2007. "The Impact of a Customs Union between Turkey and the EU on Turkey's Exports to the EU," Journal of Common Market Studies, Wiley Blackwell, vol. 45(3), pages 719-743, September.
    9. A. De Santis, Robert, 2000. "The Impact of a Customs Union with the EU on Turkey’s Welfare, Employment and Income Distribution: An AGE Model with Alternative Labour Market Structures," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 15, pages 195-238.
    10. Felicitas Nowak‐Lehmann & Dierk Herzer & Inmaculada Martinez‐Zarzoso & Sebastian Vollmer, 2007. "The Impact of a Customs Union between Turkey and the EU on Turkey's Exports to the EU," Journal of Common Market Studies, Wiley Blackwell, vol. 45(3), pages 719-743, September.
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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 Research Reports JRC84800, Joint Research Centre.
    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 Research Reports JRC84801, Joint Research Centre.

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    More about this item

    Keywords

    Trade Liberalization; Dynamic CGE Model; Agriculture; Turkey;
    All these keywords.

    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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