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Economic Impacts of Korea-Turkey FTA

Author

Listed:
  • Kilinc, Zubeyir
  • Mavuş, Merve
  • Oduncu, Arif

Abstract

The trade volume and diversity of the products traded between Korea and Turkey have been increasing since early 2000s. On top of this, the enthusiasm of the countries in exploring new opportunities led them to start the negotiations on signing a free trade agreement in 2010. The process was finalized in 2012. The agreement foresees that all of the trade tariffs on industrial products and most of the tariffs on agricultural products will be removed in seven and ten years, respectively. To the best of our knowledge, this study is the first one that investigates possible economic impacts of this agreement on Korean and Turkish economies. It employs a computable general equilibrium model and uses the Global Trade Analysis Project database. It finds that the agreement will benefit both parties in terms of GDP and export. In particular, total gains of Korea and Turkey would be as high as 0.129 and 0.054 percent of their respective GDPs. Finally, the exports of Korea might increase by up to 0.139 percent where that of Turkey might increase by 0.164 percent.

Suggested Citation

  • Kilinc, Zubeyir & Mavuş, Merve & Oduncu, Arif, 2015. "Economic Impacts of Korea-Turkey FTA," MPRA Paper 63277, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:63277
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    References listed on IDEAS

    as
    1. Arif ODUNCU & Didem GÜNEŞ & Merve MAVUŞ, 2014. "Trans-Pasifik Serbest Ticaret Anlaşmasının Türkiye Ekonomisi Üzerine Olası Etkileri," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 29(340), pages 09-26.
    2. Donghyun Park & Innwon Park & Gemma Esther B. Estrada, 2009. "Prospects for ASEAN–China Free Trade Area: A Qualitative and Quantitative Analysis," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(4), pages 104-120, July.
    3. Gemma Estrada & Donghyun Park & Innwon Park & Soonchan Park, 2012. "China's Free Trade Agreements with ASEAN, Japan and Korea: A Comparative Analysis," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 20(4), pages 108-126, July.
    4. Thomas W. Hertel & Terrie Walmsley & Ken Itakura, 2005. "Dynamic Effects Of The "New Age" Free Trade Agreement Between Japan And Singapore," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 18, pages 483-523, World Scientific Publishing Co. Pte. Ltd..
    5. Brockmeier, Martina, 2001. "A Graphical Exposition Of The Gtap Model," Technical Papers 28706, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Didem Gunes & Merve Mavus & Arif Oduncu, 2013. "AB-ABD Serbest Ticaret Anlasmasi ve Turkiye Uzerine Etkileri," CBT Research Notes in Economics 1330, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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