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An analysis of Turkey's accession to the European Union

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  • Gül Ertan Özgüzer
  • Luca Pensieroso

Abstract

We build a twocountry dynamic general equilibrium model to study whether European citizens would benefit from the eventual accession of Turkey to the European Union (EU). The results of the simulations show that Turkey's accession is welfare enhancing for Europeans, provided that Turkish total factor productivity (TFP) increases sufficiently after enlargement. In the benchmark model with no capital mobility, the Europeans are better off if the Turkish TFP increase bridges more than 21% of the initial TFP gap between Turkey and the EU. This figure increases to 33% when capital mobility is introduced.

Suggested Citation

  • Gül Ertan Özgüzer & Luca Pensieroso, 2013. "An analysis of Turkey's accession to the European Union," Canadian Journal of Economics, Canadian Economics Association, vol. 46(4), pages 1380-1405, November.
    • Handle: RePEc:cje:issued:v:46:y:2013:i:4:p:1380-1405
    DOI: 10.1111/caje.12058
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    More about this item

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical

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