We explore the economic implications of the possible Turkish accession to the European Union. We focus on three main changes associated with Turkish membership: (i) accession to the internal European Market; (ii) institutional reforms in Turkey triggered by EU-membership; and (iii) migration in response to the free movement of workers. Overall, the macroeconomic implications for EU countries are small but positive. European exports increase by around 20%. Turkey experiences larger economic gains than the EU: consumption per capita is estimated to rise by about 4% as a result of accession to the internal market and free movement of labour. If Turkey would succeed in reforming its domestic institutions in response to EU-membership, consumption per capita in Turkey could raise by an additional 9%. These benefits would spill over to the EU.

Economic development, European Union, International economic relations, International trade, Monetary unions, Turkey -- Social conditions
Institutions and the Macroeconomy (jel E02)
dx.doi.org/10.1111/j.0023-5962.2005.00279.x, hdl.handle.net/1765/11779
Kyklos: international review for social sciences
Erasmus School of Economics

de Mooij, R.A, & Lejour, A.M. (2005). Turkish Delight: Does Turkey's Accession to the EU Bring Economic Benefits?Find More Like This. Kyklos: international review for social sciences, 58(1), 87–120. doi:10.1111/j.0023-5962.2005.00279.x