The impact of Turkey joining the EU on the Turkish economy

 

 

The issue of Turkey joining the European Union is one of the issues on which the majority of Turks agree on, with a public opinion of about 75% of the Turkish people supporting membership in the European Union.

Reasons and motives of Turkey to join the European Union:

Turkey can not separate from Europe because of its geographical proximity, and  also the political developments in Europe always affect Turkey in one form or another.

The integration of the Turkish economy with the European Union will bring great gains to Turkey in all fields of investment, commercial, electronic and technological.

Turkey’s continuous quest to find markets for its products in Europe, through the removal of tariffs and the reduction of the means of protection of national industries.

Turkey’s accession to the European Union will strengthen political relations with all European countries, Turkey desires to get out of the framework of being a side state to one of the core countries, especially after realizing its regional and international status.

 

Key features of the economy Turkey:

The regional variation in Turkey has an impact on the economic distribution. The richest regions are the western parts which are the ones that collect the highest percentage of the country’s domestic production, where the industrial and service sectors are concentrated, while the poorer regions, which are located in the eastern part, Agriculture is their main source of income.

Istanbul is the economic capital, where the country’s tourism and cultural role is concentrated. Despite Turkey’s economic role, the country’s overall financial situation have been hampered by financial crises and what it caused in economic instability also affecting external commitments to foreign debt.

 

The economic impact of Turkey joining the European Union:

Turkey’s accession to the European Union will reflect positively on its economic situation and increase its wealth in various aspects such as:

 

Increased trade in goods and services

 

Integration into a single market

Turkey’s participation in a single market will lead to increased demand in the existing member countries. Moreover, increasing efficiency and prices will affect the service sector in many areas, especially increasing productivity and competitiveness of prices and thus providing a substantial increase in Turkey’s gross domestic product, The productivity is expected to increase from the country’s transition from poor agricultural production to the services sector, although the country’s banking system in the wake of the economic crisis in 2001 and under regulatory standards became stronger, harmonization of EU standards will contribute to enhancing economic stability With full membership in the European Economic and Monetary Union (UEMO), adherence to the Union’s policy and requirements and participation in the eurozone, thereby contributing to the improvement of Turkish economic activities.

 

Increasing investment opportunities

The flow of capital between the EU and Turkey have been largely beneficial, but direct foreign investment from Turkey to the EU still remains limited

The experience of the 10 member countries shows that EU membership is one of the main factors leading to capital increase, providing the opportunity for foreign direct investment from EU companies and improving private investment conditions by increasing production efficiency and trade.

 

Labor force migration

In the long term, obstacles to the freedom of movement and migration of workers from Turkey to the EU may be eliminated and may have a way of solving the EU problem in terms of aging populations. In contrast, this migration, especially the unregulated labor market, may create a problem in the labor market The European Union has not adopted measures and laws on freedom of movement and immigration now, but the development of social policy, employment opportunities, education and health will reduce the need for migration. At the country level, migration from rural areas will help develop fast-growing areas such as Istanbul and Kocaeli, and support Turkey’s membership in the EU as a whole.

 

Customs Union

As part of the agreement on the participation of the domestic market in industrial goods and the free movement of goods and industrial products between the European Union and Turkey, where the EU constitutes half of Turkish activity in terms of exports and imports.

 

-Competition policy will ensure the fight against monopoly policy.

-Laws that serve the health of individuals and the environment, regulating land, sea and air transport and protecting infrastructure.

-The freedom of movement of capital due to the large increase of foreign investment, will contribute to the recovery of the movement of money and the Turkish economy.

-The positive role in terms of social policies and employment in accordance with the compatibility with the Union, raising the standard of living of individuals and serving the rights of women in the workplcae and giving attention to the issue of child labor and the issue discrimination in relation to minorities and regions, as well as the scope of scientific participation in science and technology, culture and education.

-Establishing a more competitive agricultural sector that limits state intervention and tax policy on the pretext of protecting agricultural markets.

 

# such challenges remain linked to various foreign trade rules, standardization, import licenses, technical barriers to trade, intellectual property rights and product safety, but it is clear that Turkey’s membership of the EU will have an added value for the Turkish economy and labor market.

 

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