The effect of the customs union between Turkey and European Union on Turkish foreign trade

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Thesis Type: Postgraduate

Institution Of The Thesis: Dokuz Eylül University, Sosyal Bilimler Enstitüsü, İktisat Ana Bilim Dalı, Turkey

Approval Date: 2011

Thesis Language: Turkish

Student: BEYZA KOYUNCU EFENDİOĞLU

Supervisor: HAKAN KAHYAOĞLU

Open Archive Collection: AVESIS Open Access Collection

Abstract:

Increased competition in the World with globalization process has led to integrations between developed and developing countries with the aim of not staying out of this competition. The integrations which allowed countries to obtain greater gains in international trade and to access to greater markets led countries to increase their earnings in foreign trade. Together with this idea Turkey wanted to be member of EU and joined to Customs Union in 1996. It was observed that with Customs Union agreement Turkey?s trade deficit has increased. This study analyses the impacts of Customs Union on Turkey?s mutual trade flow with EU by using extended gravity model in the framework of panel analysis. It has been analysed that whether participation to Customs Union has created any special trade relationship between Turkey and Union or not and it was found out that Customs Union had no special contribution to Turkey?s foreign trade. The trade between Turkey and EU is related to geographical proximity and purchasing power. Another result has shown that Turkey can obtain significant gains by developing trade relationships with countries of geographical proximity.Key Words : (1) Theory of Customs Union (2) Panel Data Analysis (3) Gravity Model