Sectoral Impacts of Turkish Accession to the European Union

After major liberalization efforts by Turkish officials in the 1980s, the arguments aboutfull membership in the European Union (EU) have become a priority for Turkey because Turkey's joining the EU will have a strong impact on the macroeconomic structure of both Turkey and the EU. In order to analyze the impacts of Turkish accession to the EU, a computable general equilibrium model has been developed and the results of various policy sce- narios have been compared. The model considers the imperfect com- petition in the Turkish manufacturing sector: Results show that full membership appears to be the most beneficial scenario for the Turkish economy based on domestic production, domestic sales, and pri- vate income. However, knowing that this process is political rather than completely economic, appropriate cautions should be taken in utilizing the results of this study. Turkey's entry into a customs union with the European Union (EU) in 1995 raised some important questions. What happens if Turkey's