Title: The effect of the economic reforms of the 1980s and the Customs Union Agreement of 1996 upon the Turkish intra-industry trade

Authors: Şule Akkoyunlu; Konstantin A. Kholodilin; Boriss Siliverstovs

Addresses: ' DIW Berlin, Mohrenstr, #58, 10117, Berlin ' ETH Zurich, KOF Swiss Economic Institute, Weinbergstr. 35, 8092 Zurich, Switzerland

Abstract: In this paper, we analyse the impact of the economic reforms implemented in the 1980s and of the Customs Union Agreement of 1996 on the intra-industry trade in Turkey. We use panel data for 20 trading partners of Turkey and the sample period from 1969 until 2009. Controlling for the effects of standard determinants of intra-industry trade proposed in the literature, we find strong statistical evidence of the positive impact of both reforms on the intra-industry trade measured either by the Grubel-Lloyd or the Brülhart's indices.

Keywords: trade liberalisation; intra-industry trade; international trade; Turkey; economic reform; Customs Union Agreement.

DOI: 10.1504/IJTGM.2012.048550

International Journal of Trade and Global Markets, 2012 Vol.5 No.2, pp.107 - 118

Published online: 31 Dec 2014 *

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