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CAN TURKISH AND US CO-OPERATION IN THE BLACK SEA REGION INCREASE EFFICIENCY GAINS?

https://doi.org/10.23932/2542-0240-2017-10-2-34-49

Abstract

This paper examines the impact of co-operation between Turkey and  the US upon Turkish trade and investments towards the Black Sea  region. The study is particularly important in the conjuncture of the  US withdrawal from the Transatlantic Trade and Investment Partnership (TTIP) and in the wake of signing a free  trade agreement with the EU. An additional matter of importance  relates to the improved Turkey – Russia economic collaboration especially after the “jet” incident and American  involvement with the Middle East. Significant part of the latter is  economic as the US has also explicit economic interests in the  Eastern Meditteranean. A gravity model has been employed using  ordinary least squares on a panel data with fixed effects to analyse aggregate trade. We have also categorized export groups of  Turkey and the US separately. Our findings for both Turkish and the US exports indicate that per-capita GDP of Black Sea countries are  highly persistent and positively correlated with increased efficiency  gains and trade volumes. Regression results show that the US  exports to the EU member countries are on average less than to  those non-EU member Black Sea countries. Hence, we question  whether a possible co-operation between the US and Turkish  companies can help gaining better access to the Black Sea market for their exports.

About the Author

Sedat AYBAR
Istanbul Aydın University
Turkey


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Review

For citations:


AYBAR S. CAN TURKISH AND US CO-OPERATION IN THE BLACK SEA REGION INCREASE EFFICIENCY GAINS? Outlines of global transformations: politics, economics, law. 2017;10(2):34-49. https://doi.org/10.23932/2542-0240-2017-10-2-34-49

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ISSN 2542-0240 (Print)
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