Macroeconomic Implications of the European Integration on the Turkish Economy

The arguments about full membership in the EU has become a priority for Turkey in the last decade, because Turkey’s joining the EU will have a strong impact on Turkey’s and the EU’s macroeconomic structure. In order to analyze the impacts of Turkish accession into the EU, a computable general equilibrium model has been developed and the results of various policy scenarios have been compared. The model considers the imperfect competition in the Turkish manufacturing sector. Simulation results showed that full membership appears to be the most beneficial scenario for the Turkish economy based on several macroeconomic variables.Publisher's Versio