IDEAS home Printed from https://ideas.repec.org/a/sae/emeeco/v3y2011i2p247-274.html
   My bibliography  Save this article

Customs Union and Competitiveness of Turkish Exports in the EU Market

Author

Listed:
  • K. Ali Akkemik

    (K. Ali Akkemik, Baskent University, Department of Economics Ankara, Turkey. E-mail: akkemik@baskent.edu.tr)

Abstract

When Turkey signed the Customs Union (CU) agreement with the EU in 1996 there were doubts about the costs and benefits of the CU with regards to Turkey’s foreign trade and industrial production. Theoretically, the CU helps improve efficiency by stimulating productivity gains in the tradable sectors and via technological gains due to spillover effects. It is of utmost interest to examine whether such expectations were materialized for Turkey. This article examines the changes in major Turkish exports destined to the EU market and determinants of competitiveness using dynamic shift-share analysis for the period 1987–2006. In this method, the competitiveness of Turkish products is examined vis-à -vis her competitors in the EU market. The results of the dynamic shift-share analysis show that Turkey’s competitive position has only partially improved. The results demonstrate that Turkey’s competitive position improved in textiles, iron and steel and automotive exports, and deteriorated in technologically more advanced manufacturing exports. The major determinants of this competitive position are found not to be price-related factors but “real†factors, such as productivity. The article concludes that potential benefits from a customs union have not yet materialized for major Turkish exports.

Suggested Citation

  • K. Ali Akkemik, 2011. "Customs Union and Competitiveness of Turkish Exports in the EU Market," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 3(2), pages 247-274, May.
    • Handle: RePEc:sae:emeeco:v:3:y:2011:i:2:p:247-274
    DOI: 10.1177/097491011100300205
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/097491011100300205
    Download Restriction: no
    File URL: https://libkey.io/10.1177/097491011100300205?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bernard M. Hoekman & Togan Sübidey, 2005. "Turkey : Economic Reform and Accession to the European Union," World Bank Publications - Books, The World Bank Group, number 7494.
    2. Antonucci, Daniele & Manzocchi, Stefano, 2006. "Does Turkey have a special trade relation with the EU?: A gravity model approach," Economic Systems, Elsevier, vol. 30(2), pages 157-169, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. Natalya Ketenci, 2017. "The Effect of the European Union Customs Union on the Balance of Trade in Turkey," Foreign Trade Review, , vol. 52(4), pages 219-232, November.
    3. Greig Mordue & Erman Sener, 2022. "Upgrading in the Automotive Periphery: Turkey's Battery Electric Vehicle Maker Togg," Development and Change, International Institute of Social Studies, vol. 53(4), pages 760-795, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hasan Ersel & Fatih Özatay, 2008. "Inflation Targeting in Turkey," Working Papers 445, Economic Research Forum, revised 09 Jan 2008.
    2. INSEL, Aysu & TEKCE, Mahmut, 2010. "Econometric Analysis of the Bilateral Trade Flows in the Gulf Cooperation Council Countries," MPRA Paper 22184, University Library of Munich, Germany.
    3. Tamer Četin & Feridun Yilmaz, 2010. "Transition to the Regulatory State in Turkey: Lessons from Energy," Journal of Economic Issues, Taylor & Francis Journals, vol. 44(2), pages 393-402.
    4. My Duong & Mark J. Holmes & Anna Strutt & Steven Lim, 2019. "Effects of Trade Agreements and Foreign Direct Investment on Trade: Evidence from Vietnam," International Journal of Economics and Financial Issues, Econjournals, vol. 9(3), pages 116-126.
    5. Pekka Sulamaa & Mika Widgrén, 2006. "Turkish EU Membership: a Simulation Study on Economic Effects," EcoMod2006 272100090, EcoMod.
    6. 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.
    7. FERRAGINA, Anna Maria, 2013. "The Impact of FDI on Firm Survival and Employment: A Comparative Analysis for Turkey and Italy," CELPE Discussion Papers 127, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    8. Christopher S. P. Magee, 2016. "Trade creation, trade diversion, and the general equilibrium effects of regional trade agreements: a study of the European Community–Turkey customs union," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(2), pages 383-399, May.
    9. Kamil Yilmaz & Umit Izmen, 2009. "Turkey's Recent Trade and Foreign Direct Investment Performance," Koç University-TUSIAD Economic Research Forum Working Papers 0902, Koc University-TUSIAD Economic Research Forum.
    10. Refik Erzan, 2018. "Customs Union between EU and Turkey: A Success Story to be Nurtured," Working Papers 2018/03, Bogazici University, Department of Economics.
    11. Çekyay, Bora & Kabak, Özgür & Ülengin, Füsun & Ulengin, Burç & Toktaş Palut, Peral & Özaydın, Özay, 2020. "A multi-commodity network flow and gravity model integration for analyzing impact of road transport quotas on international trade," Research in Transportation Economics, Elsevier, vol. 80(C).
    12. Gül, ERTAN ÖZGÜZER, 2007. "May Free Capital mobility before accession be unfavorable for admission to the EU ?," Discussion Papers (ECON - Département des Sciences Economiques) 2007035, Université catholique de Louvain, Département des Sciences Economiques.
    13. Bosco Maria Giovanna, 2012. "FDI in Turkey: An Out-Of-Sample Analysis Of Unexploited Potential," Review of Middle East Economics and Finance, De Gruyter, vol. 7(3), pages 1-21, May.
    14. Hafeznia, Hamed & Pourfayaz, Fathollah & Maleki, Akbar, 2017. "An assessment of Iran's natural gas potential for transition toward low-carbon economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 71-81.
    15. Karagoz Kadir, 2014. "Determinants Of Tourist Inflows To Romania: Evidence From Augmented Panel Gravity Model," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 347-358, July.
    16. Harry G. Broadman, 2005. "From Disintegration to Reintegration : Eastern Europe and the Former Soviet Union in International Trade," World Bank Publications - Books, The World Bank Group, number 7511.
    17. Selen Guerin & Stefano Manzocchi, 2009. "Political regime and FDI from advanced to emerging countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(1), pages 75-91, April.
    18. Tamaş Anca, 2020. "Why should the gravity model be taught in business education?," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 14(1), pages 422-433, July.
    19. Ayberk SEKER, 2017. "Uluslararasi Ticarette Internet Kullaniminin Rolu: Turkiye Ornegi," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 17(1), pages 75-88.
    20. Dinçer, Gönül, 2014. "Turkey’s Rising Imports from BRICS: A Gravity Model Approach," MPRA Paper 61979, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:emeeco:v:3:y:2011:i:2:p:247-274. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.emergingmarketsforum.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.