Do regional trade agreements actually increase Turkey’s foreign trade?

Merve Mavuş Kütük, Elif Akbostancı

Abstract


After the deadlock of World Trade Organization Doha trade negotiations since 2000, trade agreements like Customs Union (CU) and free trade agreements (FTAs) gained further importance in foreign trade. The aim of this study is to analyze the role of regional trade agreements (RTAs) of Turkey in her foreign trade. Effects of the RTAs on Turkey’s foreign trade are analyzed through gravity model in line with the study of Anderson and van Wincoop (2003). The study covers Turkey’s trade flows with 126 trade partners for the period 1992-2013. Empirical findings reveal that the CU does not affect Turkey’s exports but it increases imports of Turkey. Also, it is found that the FTAs do not have any impact on either exports or imports of Turkey.


Keywords


Gravity model, customs union, free trade agreements, foreign trade, Turkey

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