Open Conference Systems, ICQQMEAS2015

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An Economic Analysis of Mutually Beneficial Export Potential between Greece and Turkey
Seda Ekmen Özçelik

Last modified: 2015-09-24


Greece as a member of the EU is a traditional trading partner of Turkey. But, the trade volume between the two countries is quite low, despite geographical proximity. Recently, government officials from Greece and Turkey held a formal meeting, and they expressed their wish to realize stronger trade relations between the two countries. They also determined a $10-billion target for volume of trade between the two countries. Increasing trade between Greece and Turkey has a great potential to result in mutually beneficial consequences. Indeed, Greece can find it even more beneficial to increase its exports to Turkey, especially at a time when Greece has been suffering from serious economic hardship. The main aim of this paper is to provide an academic and economic analysis of the export potential between Greece and Turkey. The main research questions are: “Which of Turkey’s export products have the highest export potential in the Greek market?”, and “Which of Greece’s export products have the highest export potential in the Turkish market?” Export potential can be measured in several ways. In this paper, the methodology of Revealed Comparative Advantage developed by Balassa (1965) and the methodology of Dynamic RCA index developed by Edwards and Schoer (2002) will be used to measure export potential of trade between Greece and Turkey. To my knowledge, this will be the first academic contribution to focus on this subject-matter by using that methodology. It is hoped that, this paper will be helpful in the development of a sector-specific and mutually beneficial export strategy between these two neighbor countries

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