Without being a full member of the European Union, Turkey’s participation to the Unity raised some substantial and continued questions in Turkey about the economic results of an regional integration. Some argue that, particularly adoption of the Union’s common external tariff regime would have a devastating effect on Turkey’s trade. The aim of this paper is to search the pros and cons of customs union associated with common external tariff between Turkey and European Union. Our study especially focuses on the effects of common external tariff to Turkey’s trade. The simulation results show that Turkey has been benefiting from the noticeable tariff liberalization as well as improved market conditions in line with EU since it ratified custom union with EU.
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Bekmez, Selahattin, “Sectoral Impacts of Turkish Accession to the European Union: A General Equilibrium Analysis”, Eastern European Economics, Vol. 40, No. 2, April 2002, pp. 57-84.
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A., Lisandro, R. Riezman, and J. Whalley, “How Often Are Propositions On The Effects Of Regional Trade Agreements Theoretical Curi-osa?”, Journal of International Economics, 68 2006, pp. 59-78.
A. Akkoyunlu-Wigley, and M., Sevin? “Effects of The Customs Union With The European Union On The Market Structure and Pricing Behaviour of The Turkish Manufacturing Industry”, Applied Economics, 38, (2006), pp. 2443-2452.
M. Schiff, and L. A. Winters, “Dynamics and Politics in Regional Integration Arrangements: An Introduction”, The World Bank Economic Review, Vol. 12, No. 2 (May 1998), pp. 177-195.
R.G. Lipsey, “The Theory of Customs Unions: Trade Diversion and Welfare” In: J. Bhagwati, P. Krishna, and A. Panagariya, Ed., Trading Blocs: Alternative Approaches To Analyzing Preferential Trade Agreements”, edited by MIT, 1999.
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B. Yilmaz, “The Relations of Turkey with the European Union: Candidate Forever?”, Center for European Studies Working Paper Series 167, 2008.
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T. W. Hertel, (ed.) “Global Trade Analysis: Modeling and Applications”, Cam-bridge University Press, 1997.
W. J. Harrison, K. R. Pearson, “Computing Solutions for Large General Equilibrium Models Using GEMPACK”, Computational Economics, Springer, Vol. 9, No.2, pp. 83-127.
P. S. Armington, “A Theory of Demand for Products Distinguished by Place of Production”, IMF Staff Papers 16, 1969, pp.159-178.
T. Walmsley, “Long-Run Simulations with GTAP: Illustrative Results from APEC Trade Liberalization”, GTAP Technical Paper No. 9, 2008.
R. A McDougall., A. Elbehri, T. P. Truong, eds., Global Trade, Assistance and Protection: The GTAP 4 Data Base, Center for Global Trade Analysis, Purdue University, 1998.
A., Lisandro, R. Riezman and J. Whalley, “How Often Are Propositions on the Effects of Regional Trade Agreements Theoretical Curiosa?” Journal of International Economics, Vol. 68, No. 1, January 2006, pp. 59- 78. doi:10.1016/j.jinteco.2005.03.003
G. W. Harrison, T. F. Rutherford and D. G. Tarr, “Economic Implications for Turkey of a Customs Union With The European Union: A Quantitative Based Policy Analysis,” The World Bank International Economics De- partment International Trade Division, Policy Research Working Paper, No. 1599, May 1996.
S. Bekmez, “Sectoral Impacts of Turkish Accession to the European Union: A General Equilibrium Analysis,” Eastern European Economics, Vol. 40, No. 2, April 2002, pp. 57-84.
X. Diao, L. R. Terry, A. E. Yeldan, “How Fiscal Mismanagement May Impede Trade Reform: Lessons From An Intertemporal, Multi-Sector General Equilibrium Modal For Turkey,” The Developing Economies, Vol. 37, No.1, March 1999, pp. 59-88.
A. Akkoyunlu-Wigley, and M., Sevin? “Effects of The Customs Union With The European Union on the Market Structure and Pricing Behaviour of the Turkish Manufacturing Industry,” Applied Economics, Vol. 38, No. 20, 2006, pp. 2443-2452. doi:10.1080/00036840500427643
M. Schiff and L. A. Winters, “Dynamics and Politics in Regional Integration Arrangements: An Introduction,” The World Bank Economic Review, Vol. 12, No. 2, May 1998, pp. 177-195.
R. G. Lipsey, “The Theory of Customs Unions: Trade Diversion and Welfare,” In: J. Bhagwati, P. Krishna and A. Panagariya, Eds., Trading Blocs: Alternative Approaches to Analyzing, Preferential Trade Agreements, MIT, 1999.
E. Erdogdu, “Turkey and Europe: Undivided but Not United,” Middle East Review of International Affairs, Vol. 6, No. 2, June 2002, pp. 40-51.
B. Yilmaz, “The Relations of Turkey with the European Union: Candidate Forever?” Center for European Studies Working Paper Series 167, 2008.
H. Olgun and S. Togan, “Trade Liberalization of International Trade in Turkey during the 1980s,” The Pakistan Development Review, Part II, Winter 1989, pp. 949-960.
S. Togan, “Turkey: Toward EU Accession,” The World Economy, Vol. 27, No. 7, July 2004, pp. 1013-1045.
W. J. Harrison and K. R. Pearson, “Computing Solutions for Large General Equilibrium Models Using GEMPACK,” Computational Economics, Vol. 9, No. 2, 1996, pp. 83-127.
T. W. Hertel, “Global Trade Analysis: Modeling and Applications,” Cambridge University Press, Cambridge, 1997.
P. S. Armington, “A Theory of Demand for Products Distinguished by Place of Production,” IMF Staff Papers 16, 1969, pp.159-176.
T. Walmsley, “Long-Run Simulations with GTAP: Illustrative Results from APEC Trade Liberalization”, GTAP Technical Paper No. 9, 2008.
R. A McDougall, A. Elbehri and T. P. Truong, “Global Trade, Assistance and Protection: The GTAP 4 Data Base,” Center for Global Trade Analysis, Purdue University, West Lafayette, 1998.