An Economic Analysis of the Relationship Between Turkey and the Balkan Countries

Öz This study analyses the economic relationship between Turkey and the Balkan countries, focusing on trade and foreign direct investment relationships among the countries over the period from 2006 to 2013. The results shows that Turkey`s economic relationships with the region strengthened rapidly over the sample period. While Turkey`s trade and investments has increased significantly in the region, it has been observed that there were diversification in sectorial and geographical terms as well as fluctuations on a country basis. In terms of investments, Turkey is not among the top five in any country except Albania and Kosovo. However, there are still great opportunities for Turkey to invest in the region. Given that Turkey`s trade and investments with the region increases over time, it can benefit from encouraging exports and investments in the region, but it should also be careful over its trade balance. Keywords: Turkey, Balkans, Economic Integration, Foreign Trade, FDI

Anahtar Kelimeler:

PDF

___

Akin, Çiğdem and M. Ayhan Kose (2008), Changing Nature of North-South Linkages: Stylized Facts and Explanations, Journal of Asian Economics, 19(1), 1-28.

Andreas, Johnson (2006), The Effects of FDI Inflows on host Country Economic Growth, CESIS Working Paper, 58.

Athukorala, Prema-chandra and Nobuaki Yamashita (2005), Production Fragmentation and Trade Integration: East Asia in a Global Context, North American Journal of Economics and Finance, 17(3), 233–256.

Dunning, John H. (1981), Explaining the International Direct Investment Position of Countries: Towards a Dynamic or Developmental Approach, Weltwirtschaftliches Archiv, 117(1), 30-64.

Dunning, John H. and Sarianna M. Lundan (2008), Multinational Enterprises and the Global Economy, Second Edition, Adward Elgar: UK.

Gallup, John L., Jeffrey D. Sachsand and Andrew Mellinger (1999), Geography and Economic Development, Center for International Development Working Paper, Harvard University.

Grossman, Gene M. and Elhanan Helpman (1991), Innovation and Growth in the Global Economy, MIT Press, Cambridge, M.A.

Hamidi, Lavdim (2010), Turkey’s Balkan Shopping Spree, Balkan Insight, 7 December 2010.

Hermes, Niels and Robert Lensink (2003), Foreign Direct Investment, Financial Development and Economic Growth, Journal of Development Studies, 40(1), 142-163.

International Monetary Fund (IMF) (2014), Coordinated Direct Investment Survey, Cross-Economy Data and Metadata Tables, IMF.

Kearney, A.T. (2012), FDI Confidence Index, Virginia: U.S.

Ndikumana, Léonce and Sher Verick (2008), The Linkages between FDI and Domestic Investment: Unravelling the Developmental Impact of Foreign Direct Investment in Sub – Saharan Africa, Development Policy Review, 26(6), 713-726.

Petrakos, George and Stoyan Totev (2000), Economic Structure and Change in the Balkan Region: Implications for Integration, Transition and Economic Cooperation, International Journal of Urban and Regional Research, 24 (1), 95-113.

Sachs, John (1997), Geography and Economic Transition, Centre for International Development Working Paper, Harvard University.

United Nations Conference on Trade and Development (UNCTAD) (2013), World Investment Prospects Survey 2013-2015, UNCTAD: New York and Geneva:

World Bank (2014). World Development Indicators, The World Bank: Washington, D.C