The Effects of EU Customs Union Integration on Turkish Intra-industry Trade

Authors

  • Gulcin Elif Yucel ISTANBUL TECHNICAL UNIVERSITY

DOI:

https://doi.org/10.5195/emaj.2014.60

Keywords:

Customs Union, Intra-Industry Trade, Turkey, Manufacturing Sector

Abstract

EU is the major trade partner of Turkey with a significant share in total trade flows. Since Turkey switched from import substitution strategy to export-led growth strategy in 1980, import restrictions were eliminated. In January 1996, Customs Union (CU) with EU countries was put into force, which is a turning point in Turkey's foreign trade and is a considerable attempt towards trade liberalization. It is generally expected that intra-industry trade (IIT) is greater in the countries that experienced an economic integration. In this paper, the relation between the integration process and the intensity of IIT between Turkey and EU countries will be examined by comparing before-and-after periods of Turkey's CU membership. All calculations are made for the manufacturing sector by using Turkish bilateral trade data for 1990-2009 period and 2-digit ISIC Rev. 3 data.

Author Biography

Gulcin Elif Yucel, ISTANBUL TECHNICAL UNIVERSITY

She was born in Istanbul, Turkey. She got her bachelor's degree in Deparment of Economics and Public Finance (as double major) in Istanbul University. She got her master's degree in Economics Division of Istanbul Technical University. She has been in Germany as a vising researcher. She got her PhD in Deparment of Economics of Marmara University. Some of her working areas are macroeconomics, international trade and economic development.

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Published

2014-08-06

Issue

Vol. 4 No. 1 (2014)

Section

Articles

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