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.
References
1. Akkemik K.A., Göksal K. (2010). Do Chinese exports crowd-out Turkish exports? İktisat, İşletmeve Finans, 25 (287). 9–32.
2. Anderson, J. E., van Wincoop E. (2003). Gravity with gravitas: a solution to the border puzzle. American Economic Review, 93(1). 170–192.
3. Anderson, J.E. (1979). A theoretical foundation for the gravity equation. American Economic Review, 69(1). 106–116.
4. Antonucci D., Manzocchi S. (2006). Does Turkey have a special traderelation with the EU? A gravity model approach. Economic Systems, (30). 157–169.
5. Bergstrand J.H. (1985). The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence. The Review of Economics and Statistics, 67(3). 474–481.
6. Bergstrand J.H. (1990). The Heckscher-Ohlin-Samuelson Model, the Linder Hypothesis, and the Determinants of Bilateral Intra-industry Trade. Economic Journal, 100(403).1216–1229.
7. Bergstrand J.H.(1989). The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade. The Review of Economics and Statistics, 71(1). 143–153.
8. Helpman E., Krugman P. (1985). Market Structure and Foreign Trade. Cambridge: MIT Press. 283.
9. Kepaptsoglou K., Karlaftis M.G., Tsamboulas D. (2010). The Gravity Model Specification for Modeling International Trade Flows and Free Trade Agreement Effects: A 10-Year Review of Empirical Studies. The Open Economics Journal, (3). 1–13.
10. Kuznetsov A.V., Nevskaya, A.A. (2017). Geography of FDI from Visegrad Countries in Russia. Chodkowska-Miszczuk, J., Szymańska, D. (eds.). Bulletin of Geography. Socio-economic Series, 36. Toruń: Nicolaus Copernicus University. 107–115. DOI: http://dx.doi.org/10.1515/bog-2017-0018
11. Kuznetsov A. (2017). Investment Relations Between Russia and the USA. Liuhto K. [et al.]. The Russian Economy and Foreign Direct Investment. New York: Routledge. 43–59.
12. Lejour A. M., de Mooij R.A. (2005). Turkish Delight: Does Turkey’s Accession to the EU Bring Economic Benefits? Kyklos, 58 (1). 87–120.
13. Linnemann, H. (1966). An econometric study of international trade flows. Amsterdam: North Holland. 234.
14. Rangelova R. (1999). Economic Growth in Transition CEESs: Implications for and of Modern Growth Theory. In: Economies in Transition and the Varieties of Capitalisms: Features, changes, Convergence. Dimitrov M., Andreff W., Csaba L. (eds.). European Association for Comparative Economic Studies. Institute of Economics at the Bulgarian Academy of Sciences. Proceedings of the 5th Biannual Conference of the EACES. Sofia: Gorex Press. 99–123.
15. Tayyab M., Tarar A., Riaz M. (2012). Review of Gravity Model Derivations, Mathematical Theory and Modeling, 2(9). 82–95.
16. Tinbergen J. (1962). Shaping the World Economy. New York: The Twentieth Century Fund. 330.
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
Views:
1870
Email this article 