Worthy Transfers ? A Dynamic Analysis of Turkey’s Accession to the European Union
Gul Ertan Ozguzer and
Luca Pensieroso ()
No 2009029, Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)
In this paper, we build a two-country dynamic general equilibrium model to study whether European citizens would benefit from the eventual accession of Turkey to the European Union. The results of the simulations show that Turkey's accession to the European Union is welfare enhancing for Europeans, provided that Turkish total factor productivity (TFP) increases sufficiently after enlargement. In the model with no capital mobility, the Europeans are better off it the Turkish TFP increase bridges more than 31% of the initial TFP gap between Turkey and the European Union. That figure becomes 45% when capital mobility is introduced.
Keywords: European Union; Turkey; Enlargement; Dynamic General Equilibrium; Open Economy Macroeconomics (search for similar items in EconPapers)
JEL-codes: F41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ara, nep-cwa and nep-dge
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Working Paper: Worthy Transfers? A Dynamic Analysis of Turkey's Accession to the European Union (2010)
Working Paper: Worthy Transfers? A Dynamic Analysis of Turkey's Accession to the European Union (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2009029
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