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Taking Stock: The Customs Union between Turkey and the EU Fifteen Years Later

Author

Listed:
  • Kamil Yilmaz

    () (Koc University)

Abstract

This article focuses on the customs union (CU) already in effect for almost a decade and a half now and links the impact of the CU with the sources of support as well as resistance within Turkey to further integration with the EU. Overall the CU had a positive impact on Turkish economy through improved productivity in manufacturing industries. While the increased import penetration after the CU increased the competitive pressure on several industries in the short run, this short-run impact helped them improve productivity in the medium- to long-term. The CU also led to significant improvements in the implementation of competition policy with additional positive effects on Turkish economy. With increased productivity and competitiveness manufacturing industries was able to weather the storm during 2001 economic crisis and in the wake of Chinese entry to world export markets. However, following the successful initial adaptation phase and the significant changes in the EU’s trade policy framework towards preferential trade agreements, the CU has started to generate some strains on Turkish trade.

Suggested Citation

  • Kamil Yilmaz, 2010. "Taking Stock: The Customs Union between Turkey and the EU Fifteen Years Later," Koç University-TUSIAD Economic Research Forum Working Papers 1023, Koc University-TUSIAD Economic Research Forum.
  • Handle: RePEc:koc:wpaper:1023
    as

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    File URL: http://eaf.ku.edu.tr/sites/eaf.ku.edu.tr/files/erf_wp_1023.pdf
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    References listed on IDEAS

    as
    1. Taymaz, Erol & Yilmaz, Kamil, 2006. "Productivity and Trade Orientation: Turkish Manufacturing Industry Before and After the Customs Union," MPRA Paper 58843, University Library of Munich, Germany, revised 2007.
    2. Sule Ozler & Kamil Yilmaz, 2009. "Productivity response to reduction in trade barriers: evidence from Turkish manufacturing plants," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(2), pages 339-360, July.
    3. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2014. "Trade Policy Options for Chile: The Importance of Market Access," World Scientific Book Chapters,in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 14, pages 329-359 World Scientific Publishing Co. Pte. Ltd..
    4. Erol Taymaz & Ebru Voyvoda & Kamil Yilmaz, 2010. "Global Links and Local Bonds: The Role of Ownership and Size in Productivity Growth," Koç University-TUSIAD Economic Research Forum Working Papers 1020, Koc University-TUSIAD Economic Research Forum.
    5. Erol Taymaz & Kamil Yılmaz, 2008. "Integration with the Global Economy: The Case of Turkish Automobile and Consumer Electronics Industries," Koç University-TUSIAD Economic Research Forum Working Papers 0801, Koc University-TUSIAD Economic Research Forum.
    6. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2014. "Trade liberalization, poverty and efficient equity," World Scientific Book Chapters,in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 11, pages 255-286 World Scientific Publishing Co. Pte. Ltd..
    7. 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..
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    Citations

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    Cited by:

    1. Türkcan, Kemal, 2014. "Investigating the Role of Extensive Margin, Intensive Margin, Price and Quantity Components on Turkey’s Export Growth during 1998-2011," MPRA Paper 53292, University Library of Munich, Germany.
    2. Gulay Gunluk-Senesen & Umit Senesen, 2011. "Decomposition Of Labour Demand By Employer Sectors And Gender: Findings For Major Exporting Sectors In Turkey," Economic Systems Research, Taylor & Francis Journals, vol. 23(2), pages 233-253.

    More about this item

    Keywords

    Turkey; European Union; Customs Union; Free Trade Area; Welfare analysis; Computable General Equilibrium; Exports; Imports;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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