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GTAP Resource #3883

"Moving towards EU or MENA? Comparing Alternative Turkish Foreign Policies Utilizing the GTAP framework"
by De Jong, Beyhan, Tanja Engelbert and Martina Brockmeier

Within the last years, Turkey has been in search of a new orientation in foreign policy. Main reasons for this are the infinite membership negotiations with the European Union (EU) and the so called “axis shift” towards the Middle East. On the one hand, Turkey has established a Customs Union with the EU in 1995 and is a candidate country since 1999. On the other hand, since 2002, Turkey has followed a new era for Turkish foreign policy and started being politically closer to Middle East and North Africa (MENA). Accordingly, free trade agreements (FTAs) that have been signed in the last 10 years are mainly oriented towards the MENA region. In this study, we analyze the EU enlargement of Turkey and compare it to a potential FTA between Turkey and MENA countries by employing the computable general equilibrium model GTAP and the most recent Version 8 of the GTAP data base. In contrast to previous studies, additionally we consider the reduction of non-tariff barriers (NTBs) in our simulations. We estimate NTBs through a set of gravity equations using the theory-based border effect approach. Thereafter, we report the results in terms of main economic indicators:

Resource Details (Export Citation) GTAP Keywords
Category: 2012 Conference Paper
Status: Published
By/In: Presented at the 15th Annual Conference on Global Economic Analysis, Geneva, Switzerland
Date: 2012
Created: De Jong, B. (4/30/2012)
Updated: De Jong, B. (6/22/2012)
Visits: 1,724
- Preferential trading arrangements
- Middle East
- European Union

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