TITLE:
Long-Run Effects of Customs Union between European Union and Turkey: Is it Zero-Sum Game
AUTHORS:
Nedret Demirci, Levent Aydın
KEYWORDS:
Trade Liberalization, Customs Union, Common External Tariff, GTAP Model, Turkey
JOURNAL NAME:
Modern Economy,
Vol.2 No.2,
May
17,
2011
ABSTRACT: 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.