The Impacts of the Turkish Emigrants on Turkish Exports and Imports in Europe

Insel, Aysu and Sungur Cakmak, Nesrin (2010): The Impacts of the Turkish Emigrants on Turkish Exports and Imports in Europe.

Abstract

This paper examines the link between migration and trade, focusing on Turkey as a “sending” country and the selected trading partners, Austria, Belgium, Denmark, Finland, France, Germany, Holland, Italy, Norway, Spain, Sweden, Switzerland and the UK, as the “receiving” countries in Europe. The research question is: “Do Turkish emigrants have positive impacts on the exports and imports of Turkey through preference and/or network channels.” The investigation methodology involves the fixed effect panel data analysis, and the estimation technique is the Least Squares under the assumption of the presence of cross section heteroskedasticity and the robust standard errors. This paper includes the 1980-2007 period, as well as two sub-periods, 1980-1995 and 1996-2007, in order to test the impact of the 1995 December Customs Union agreement between Turkey and EU countries. The trade function has been determined by the stock of Turkish population, per capita real income, real exchange rate, and the lagged dependent variable. It has been found that Turkish emigrants have significantly positive effect on trade mainly after the Custom Union Agreement, through the preference and network channels.

• Item Type: MPRA Paper
• Language: English
• Keywords: Migration; Trade; Panel data; Dynamic models; Turkey
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F22 - International Migration; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade

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