Economic Integration Agreements and the Survival of Exports


Creative Commons License

TÜRKCAN K., Saygili H.

JOURNAL OF ECONOMIC INTEGRATION, vol.33, no.1, pp.1046-1095, 2018 (ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 33 Issue: 1
  • Publication Date: 2018
  • Doi Number: 10.11130/jei.2018.33.1.1046
  • Journal Name: JOURNAL OF ECONOMIC INTEGRATION
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus
  • Page Numbers: pp.1046-1095
  • Keywords: Economic Integration Agreements, Export Duration, Fragmentation, Global Production Networks, Parts and Components, Survival Analysis, REGIONAL TRADE AGREEMENTS, CUSTOMS UNION, VERTICAL SPECIALIZATION, TURKEY, EU, DURATION, CREATION, DETERMINANTS, GROWTH, DIVERSION
  • Akdeniz University Affiliated: Yes

Abstract

This study investigates how various Economic Integration Agreements between Turkey and its trading partners affected the exports of machinery during 1998 similar to 2013. In addition, it differentiates between trade in parts and components and finished products, and assesses the effects of Economic Integration Agreements separately on these two types of goods. Using a discrete-time probit model with random effects, we show that an Economic Integration Agreement increases the survival of export relations which were initiated before the agreement. It is found to be reasonably heterogeneous, that is, the effect is found to be larger for parts and components exports occurring within the Global Production Networks compared to finished products exports.