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EU Integration of Turkey: Implications for Turkish Agriculture

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  • Eruygur, H.O.
  • Cakmak, Erol H.

Abstract

Turkey’s membership to the EU will involve full liberalization of agricultural trade with the EU. The effects of liberalization are bound to depend on the path of agricultural policies in Turkey and in the EU during the accession negotiations. In order to evaluate the possible impacts of a variety of policy alternatives and scenarios, an economic modelling approach based on non-linear mathematical programming is appropriate. In this framework, the major purpose of this paper is to evaluate the impact of Turkish integration to the EU on agriculture using an agricultural sector model for Turkey. The basic approach undertaken supplements the past efforts by incorporating Maximum Entropy to the positive mathematical programming, together with updated base period and including recent policy changes. Following the integration with EU, the net exports in agro-food products decline mainly due to the expansion of trade in livestock products. Overall welfare effects of including agrofood products in the customs union and membership are small. Consumers benefit from declining prices. CAP supports are determinative for producers’ welfare. The results of the simulations provide also updated estimates about the possible size of CAP expenditures for Turkish agriculture.

Suggested Citation

  • Eruygur, H.O. & Cakmak, Erol H., 2008. "EU Integration of Turkey: Implications for Turkish Agriculture," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44213, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:44213
    DOI: 10.22004/ag.econ.44213
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    References listed on IDEAS

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    1. Grethe, Harald, 2005. "Turkey’s accession to the EU: what will the Common Agricultural Policy cost?," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 54(02), pages 1-10.
    2. Howitt, Richard E. & Mean, Phillippe, 1985. "Positive Quadratic Programming Models," Working Papers 225801, University of California, Davis, Department of Agricultural and Resource Economics.
    3. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    4. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
    5. Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
    6. Richard E. Howitt, 1995. "A Calibration Method For Agricultural Economic Production Models," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(2), pages 147-159, May.
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    1. Gökhan ÖZERTAN & Sayed H. SAGHAİAN & Hasan TEKGÜÇ, 2015. "Dynamics of Price Transmission and Market Power in the Turkish Beef Sector," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 30(349), pages 53-76.
    2. Aghabeygi, Mona & Louhichi, Kamel & Gomez y Paloma, Sergio, 2022. "Impacts of fertilizer subsidy reform options in Iran: an assessment using a Regional Crop Programming model," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(1), April.
    3. Brosig, Stephan & Glauben, Thomas & Götz, Linde & Weitzel, Enno-Burghard & Bayaner, Ahmet, 2011. "The Turkish wheat market: spatial price transmission and the impact of transaction costs," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27(2), pages 147-161.

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