Liten vill bli stor - Effekter av Turkiets tullunionsbildande med EU

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Turkey??s nearly fifty-year-old aspiration for admittance to the European Union took a crucial step forward with the signing of the Ankara agreement in 1996. The aim of this thesis is to examine the trade effects that evolve from the creation of a customs union. Our objective is to study how Turkey??s trade patterns adapted to the liberalized trade by examining the effects on resource allocation, specialization and welfare. When analyzing the variables we use import and export measures developed by Bela Balassa. Using OECD trade statistics, resource allocation and welfare effects are examined through the concepts of trade creation and trade diversion. Patterns of specialization are explained by the theory of revealed comparative advantage. The co-operation led to great welfare gains. Turkey responded to the possibilities created by the further integration by increasing trade and allocating resources more effectively between the country and its trading partners. Turkey became less specialized after the accession to the customs union. The growing diversification of the country??s production s...