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GTAP Resources: Resource Display

GTAP Resource #3514

"Turkey’s Shifting Axis to the East: Implications of Regional Integration with the Neighborhood "
by Acar, Mustafa and Levent Aydin

This paper analyzes the impact of Turkey’s regional integration with the neighbourhood in an applied general equilibrium framework. The standard GTAP model has been extended to address the three main components of Turkey’s possible integration: elimination of import tariffs mutually, free movement of labor among regions, and free movement of capital. The results suggest that Turkey, Russia and XSU would experience welfare gain under the trade liberalization policy reform while the ME suffers from welfare loss. Labor mobility does not cause considerable changes in the real GDP (less than 0.1 percent) through falling real wages in the labor exporting regions. Integration with ME allows the participating countries to achieve larger economies of scale in production, increase competitiveness and diversify their export basket, thus assisting domestic economic reforms.

Resource Details (Export Citation) GTAP Keywords
Category: 2011 Conference Paper
Status: Published
By/In: Presented at the 14th Annual Conference on Global Economic Analysis, Venice, Italy
Date: 2011
Created: Acar, M. (4/9/2011)
Updated: Batta, G. (8/15/2011)
Visits: 1,612
- Foreign direct investment
- Labor market issues
- Middle East

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