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Title: The welfare and production effects of Turkey's Customs Union Agreement with the EU : the case of Turkish manufacturing
Author: Karakaya, Etem
ISNI:       0000 0001 3594 8596
Awarding Body: Nottingham Trent University
Current Institution: Nottingham Trent University
Date of Award: 2001
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This research examines the implications of the Customs Union Agreement with the European Union on the Turkish economy. For this purpose, we developed a single country 21-sector computable general equilibrium model, which takes imperfect competition and economies of scale into consideration. The literature suggests that when imperfect competition included into the models, welfare implications of an economic integration differs quantitatively from those reached under the perfect competition paradigm. This involves an assessment of the implications for the structure of production and trade in the Turkish economy. We quantify the impact on Turkey of two aspects of its new Customs Union Agreement: elimination of both tariffs and non-tariff barriers among the member countries and reduction of external tariffs through implementation of the common external tariff of the European Union (fiill liberalisation case), and elimination of tariffs only together with common external tariff reductions (tariffs-only case). These two scenarios are alternatively assessed under perfectly competitive and imperfectly competitive models. Two important conclusions can be drawn from our simulated results. First, we find that Customs Union Agreement is beneficial to Turkey in all alternative model cases and the imperfectly competitive models result in considerably higher gains compared to perfectly competitive models. Second, if Turkey achieves foil liberalisation with the Customs Union Agreement, the economic gains are considerably higher than the tariff removalsonly case in all model versions. The sensitivity analysis shows that the results are relatively robust to the way the model is calibrated.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available