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Effects of the EU-Turkish Customs Union on the Intra-EU Trade Flows

Dahlberg, Erik LU (2013) NEKN01 20122
Department of Economics
Abstract
The increased possibilities for geographical separation of the production process have given rise to a growing interest for trade in intermediate goods in the international trade literature. Thanks to trade in parts and components, but also in services and other immaterial products, developing countries have been able to enter the global trade scene to a greater extent than before. This paper analyzes the trade effects of the customs union between the European Union and Turkey, implemented in 1996. Specifically, a set of gravity equations are used in order to analyze how the intra-EU export flows of intermediate- vis-à-vis other goods have been affected. That is, how the integration of Turkey into the EU market has affected the trade flows... (More)
The increased possibilities for geographical separation of the production process have given rise to a growing interest for trade in intermediate goods in the international trade literature. Thanks to trade in parts and components, but also in services and other immaterial products, developing countries have been able to enter the global trade scene to a greater extent than before. This paper analyzes the trade effects of the customs union between the European Union and Turkey, implemented in 1996. Specifically, a set of gravity equations are used in order to analyze how the intra-EU export flows of intermediate- vis-à-vis other goods have been affected. That is, how the integration of Turkey into the EU market has affected the trade flows between a selection of Southern- and Northern EU member countries. The results reveal that the intra-EU exports of the Southern EU have experienced a greater reduction in its exports compared to the Northern EU, especially in exports of other than intermediate goods. (Less)
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author
Dahlberg, Erik LU
supervisor
organization
course
NEKN01 20122
year
type
H1 - Master's Degree (One Year)
subject
keywords
Intermediate goods, customs union, gravity equation, internal trade effects, technological differences, European Union, Turkey.
language
English
id
3437028
date added to LUP
2013-02-13 19:35:45
date last changed
2013-02-13 19:35:45
@misc{3437028,
  abstract     = {The increased possibilities for geographical separation of the production process have given rise to a growing interest for trade in intermediate goods in the international trade literature. Thanks to trade in parts and components, but also in services and other immaterial products, developing countries have been able to enter the global trade scene to a greater extent than before. This paper analyzes the trade effects of the customs union between the European Union and Turkey, implemented in 1996. Specifically, a set of gravity equations are used in order to analyze how the intra-EU export flows of intermediate- vis-à-vis other goods have been affected. That is, how the integration of Turkey into the EU market has affected the trade flows between a selection of Southern- and Northern EU member countries. The results reveal that the intra-EU exports of the Southern EU have experienced a greater reduction in its exports compared to the Northern EU, especially in exports of other than intermediate goods.},
  author       = {Dahlberg, Erik},
  keyword      = {Intermediate goods,customs union,gravity equation,internal trade effects,technological differences,European Union,Turkey.},
  language     = {eng},
  note         = {Student Paper},
  title        = {Effects of the EU-Turkish Customs Union on the Intra-EU Trade Flows},
  year         = {2013},
}