Abstract:
This study aims at the dynamic effects of the customs union between Turkey and the European Union (abbreviated as CUTEU) from the partial equlibrium view. This aricle consists of three parts. The first part of the article analyses briefly the static and dynamic effects and their measurement methods in customs union. The second part of the article includes a model which aims at measuring emprically foreign direct investments as a dynamic result of the CUTEU. The last part of the article evaluates the findings drawn from the above-mentioned model.