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An analysis of Turkey's accession to the European Union

Gul Ertan Ozguzer and Luca Pensieroso ()

Canadian Journal of Economics, 2013, vol. 46, issue 4, 1380-1405

Abstract: We build a twocountry dynamic general equilibrium model to study whether European citizens would benefit from the eventual accession of Turkey to the European Union (EU). The results of the simulations show that Turkey's accession is welfare enhancing for Europeans, provided that Turkish total factor productivity (TFP) increases sufficiently after enlargement. In the benchmark model with no capital mobility, the Europeans are better off if the Turkish TFP increase bridges more than 21% of the initial TFP gap between Turkey and the EU. This figure increases to 33% when capital mobility is introduced.

JEL-codes: F41 E13 (search for similar items in EconPapers)
Date: 2013
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