The EU and Turkey—Economic Effects of Turkey’s Full Membership

Since October 2005 the EU and Turkey have been negotiating the accession of Turkey to the EU. In June 2006 they reached agreement on the provisional closure of the “science and research” chapter, a matter which was relatively easy to handle. Thirty-four chapters remain to be negotiated, indicating that the path to Turkey’s full membership will be a long one. What are the main economic challenges facing both Turkey and the EU?     

Telecommunications Policy Reform in Turkey

This paper, considering the economic effects of liberalisation in the telecommunications sector on the Turkish economy, makes use of the empirical studies on the linkages between regulatory regimes and telecommunications prices. Since Turkey is trying to liberalise the telecommunications sector by following the EU approach to liberalisation, the paper considers briefly the regulatory regimes in the telecommunications sectors of the EU and Turkey, determines the ad valorem equivalent of barriers to the telecommunications services sector in Turkey, and derives estimates of the welfare effects of adopting the EU rules and regulations in the Turkish telecommunications sector. It shows that there is tremendous scope for Turkey to benefit from adopting and implementing the legislative, regulatory and institutional framework of the EU telecommunications sector.     

Turkey: Trade Policy Review

The purpose of the paper is to discuss the main issues highlighted in the Trade Policy Review: Turkey 2003. The paper studies first the main developments in Turkey's trade regime and trade performance. Next it discusses Turkish trade policy emphasising the measures affecting imports, exports and foreign direct investment. The paper points out that agriculture is highly protected, and that autonomous reforms have been implemented in some of the services sectors of the economy. Since joining the EU will require Turkey to adopt and implement the whole body of EU legislation – the acquis communautaire– in all areas, Turkey needs to liberalise its agricultural and services sectors further. Finally, the paper discusses an issue that has largely been neglected in Trade Policy Reviews. It is the sustainability of current account. The paper stresses that Turkey needs to pay close attention to the sustainability of the current account.     

Turkey: Toward EU Accession

The purpose of this paper is to study selected aspects of Turkish accession to the EU. Joining the EU will require that Turkey attains macroeconomic stability, adopts the Common Agricultural Policy, and liberalizes its services and network industries. Furthermore, joining the EU will require Turkey to adopt and implement the whole body of EU legislation and standards – the acquis communautaire. According to the EU membership criteria, new members must be able to demonstrate the ‘ability to take on the obligations of membership including adherence to the aims of political, economic and monetary union’. Thus Turkey will be expected to adopt the euro when it is ready to do so, but not immediately upon accession. Integration will boost allocative efficiency in the Turkish economy which in turn will make the country a better place to invest. Furthermore, Turkey will reap the benefits from monetary integration and from migration of labour to the EU. But the welfare gains will have a price, and the price will be the adjustment costs associated with the adoption of the acquis communautaire. The final section of the paper considers the effects of accession on the EU in terms of migration and budgetary effects.     

Understanding Managerial Work Values in Turkey

The objective of this study was to explore certain managerial work values in Turkey. A total of 1023 managers from six Turkey regions participated in the study and filled out the questionnaires. Findings were analyzed using regression and anova analyses. A total of three managerial work value factors emerged, which was supported by the current value literature. It was found that there was a relationship between work values and organizational size. The lower the organizational size, the higher the proper values are held. However, organizational tenure, the number of subordinates a manager is responsible, and the educational level of a manager had no significant effect on holding work values. The proper values outnumbered the improper values significantly. The three most held work values were integrity, doing work with care and discipline, and achievement. The three least held values were cliquishness, laziness, and hypocrisy.     

Welfare Costs of Business Cycles in Turkey

How large are welfare costs related to economic aggregate fluctuations is a topic of great concern among economists at least since Lucas's (1987) model. Our analysis assesses the magnitude of such costs for Turkey by means of two approaches: aggregate and disaggregate. The former approach uses aggregate data employing three alternative trend‐cycle decomposition methods which are Lucas' classical set‐up with deterministic linear trend for consumption, Hodrick and Prescott filter and one in which consumption trend is stochastic and whose implementation is performed using Beveridge–Nelson decomposition. The results of both approaches suggest that Turkey has high welfare costs associated with business cycles.     

Turkey: Trade Policy Review, 2007

The purpose of this paper is to discuss the main issues highlighted in the Trade Policy Review: Turkey 2007. The paper studies first the main developments in Turkey’s trade regime and trade performance. Next it discusses Turkish trade policy under the headings of measures affecting imports, exports and foreign direct investment. The paper notes that the formation of the 1995 EU–Turkey customs union has contributed to a significant increase in the contestability of domestic markets through infusing predictability, transparency and stability to trade policy as well as by liberalising market access. But free trade in industrial goods between Turkey and the EU could still not be established mainly because of non‐tariff barriers and in particular because of the various problems faced in the elimination of technical barriers to trade (TBT). The final section of the paper discusses first the role of standards and conformity assessment in general terms and thereafter evaluates critically the Turkish approach to elimination of TBTs.     

土耳其DVD专利费谈判的警示

正当土耳其电子工业庆幸胜诉于欧盟电视机倾销调查,受益于世界杯利好市场的时候,新年之后困扰中国DVD工业的恶梦重现土耳其.     

An analysis of child consumers in Turkey

This research was conducted on 402 children going to kindergarten and primary schools with the purpose of analysing the children's interests, responsibilities, economic resources, purchasing activities, and socialization agents and purchase influences as consumers. Data were collected using a questionnaire, which was prepared by considering some previous research. The questionnaire was applied to subjects through face‐to‐face individual interview. The data were analysed by using explanatory variables, including age, gender, socio‐economic status and family type. Findings indicated that consumer socialization of children was connected to selected demographic characteristics, especially age, and they were surprisingly independent and influential consumers. The results of this study are important for those involved in children's and adults’ markets, and for consumer educators.     

Agricultural Policies and Trade Paths in Turkey

In 1959, shortly after the European Economic Community was founded under the 1957 Treaty of Rome, Turkey applied for Associate Membership of the then six‐member common market. By 1963, a path for integrating the economies of Turkey and the eventual European Union had been mapped. As with many trade agreements, agriculture posed difficult political hurdles, which were never fully cleared, even as trade barriers to other sectors were eventually removed and a Customs Union formed. In this paper, we trace the influences the Turkey‐EU economic institutions have had on agricultural policies and the agricultural sector. Using an applied general equilibrium framework we provide estimates of what including agriculture under the Customs Union would mean for the sector and the economy. We also discuss the implications of fully aligning Turkey's agricultural policies with the EU's Common Agricultural Policy, as would be required under full membership.     

Determinants of foreign direct investment in Turkey

The motives and characteristics of western MNEs' foreign direct investment (FDI) in Turkey are considered in terms of Dunning's ownership, location, internalization (OLI) paradigm for a sample of 98 firms. A parsimonious set of motives is identified by means of factor analysis. Binomial logit regression models are used to test a set of hypotheses concerning the relative importance of FDI motives and the sample characteristics. The findings are that the relative importance of the OLI factors vary most with the industry of the investment, to a moderate extent with the size of the investment and to a modest extent with the ownership pattern of the investment (wholly owned subsidiary or joint venture). © 1998 John Wiley & Sons, Inc.     

Ways to Interpret Turkey’s Current Account

In order to qualify for EU membership Turkey will have to fulfil a number of economic criteria. With this in mind, the following article examines the Turkish current account in the period 1975 to 2004, in which it has shown a consistent pattern of surplus in transfers and trade in services, and defi cits in factor incomes and in trade in goods. Several contradictory interpretations of the facts are then discussed.     

The exchange regime and trade balance in Turkey

Over the last 15 years, high trade deficits have become a source of external vulnerability for the relatively stabilized Turkish economy. This corresponds to the period where authorities have been following a floating exchange rate regime. Thus, this study aims to empirically show whether the adopted exchange rate regime has an impact on the trade balance for the period of 1987 Q1 to 2015 Q2. Estimation results indicate that there is a long-run relationship between the real effective exchange rate and trade balance under both fixed and floating regimes in Turkey, but there is no evidence for the J-curve hypothesis.     

Productivity losses from road traffic deaths in Turkey

The importance of road traffic injuries in Turkey is not generally appreciated, in part due to lack of knowledge of its economic burden and in part due to major underestimation in official statistics. The total years of potential life lost and potentially productive years of life lost from mortality were calculated in order to estimate the cost of productivity losses from road traffic deaths in Turkey. More years of potentially productive life are lost due to road traffic deaths than to respiratory tract illnesses or diabetes mellitus, two other serious health problems in Turkey. Road traffic deaths cost Turkey an estimated USD 2.6 billion every year in productivity losses alone, more than the World Bank estimate of the indirect costs from the 1999 Marmara earthquake (USD 1.2-2 billion), Turkey's worst earthquake since 1939 (World Bank Turkey Country Office, 1999). This study highlights the importance of accurate information in ameliorating the burden of road traffic safety in Turkey. Turkey has great opportunities to implement cost-effective interventions to reduce the economic burden of fatal and non-fatal road traffic injuries.     

Identification of adopter categories for online banking in Turkey

This article reports the results of an investigation of demographic and lifestyle characteristics of adopters of online banking services in Turkey by using the Bass diffusion model. The results of multinominal logistic regression analysis suggest that there are significant differences both in demographic characteristics, such as age and gender, and psychographic characteristics, such as leadership, non-traditionalism, innovativeness, and practicality among the different adopter categories. Thus, new variables such as gender and lifestyle, which have not been investigated in the literature, could be introduced as segmentation variables to develop more effective marketing strategies tailored to each adopter category in online banking services.