Sectoral Impacts of Turkish Accession to the European Union: A General Equilibrium Analysis

Selahattin Bekmez

Eastern European Economics, 2002, vol. 40, issue 2, 57-84

Abstract: After major liberalization efforts by Turkish officials in the 1980s, the arguments about full membership in the European Union (EU) have become a priority for Turkey because Turkey's joining the EU will have a strong impact on the macroeconomic structure of both Turkey and the EU. In order to analyze the impacts of Turkish accession to the EU, a computable general equilibrium model has been developed and the results of various policy scenarios have been compared. The model considers the imperfect competition in the Turkish manufacturing sector. Results show that full membership appears to be the most beneficial scenario for the Turkish economy based on domestic production, domestic sales, and private income. However, knowing that this process is political rather than completely economic, appropriate cautions should be taken in utilizing the results of this study.

Date: 2002
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