From spring to winter? An analysis of "Arab spring" impacts on Turkey and MENA region foreign trade w i t h gravity approach


Kahveci M.

Asian Economic and Financial Review, vol.9, no.12, pp.1320-1334, 2019 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 9 Issue: 12
  • Publication Date: 2019
  • Doi Number: 10.18488/journal.aefr.2019.912.1320.1334
  • Journal Name: Asian Economic and Financial Review
  • Journal Indexes: Scopus
  • Page Numbers: pp.1320-1334
  • Keywords: Arab spring, Foreign policy shift, Foreign trade, Gravity model, Trade state, Turkey and MENA trade
  • Istanbul University Affiliated: Yes

Abstract

© 2019 AESS Publications. All Rights Reserved.This paper analyzed the foreign policy adjustment in Turkey's current ruling party government period, and the impacts of Arab Spring on the Turkey-MENA region trade. For this purpose, Tinbergen's Gravity Model that is regarded as the workhorse of the empirical international trade model was run by augmenting it with foreign policy adjustment dummies (political shift and Arab Spring), political violence, corruption, free trade agreements, regional and trade agreements. With these policy dummies, we analyzed the impacts of Turkish foreign policy adjustment tools on Turkey and MENA region trade. Estimation results showed that the increase in political connections and concentration in the MENA region had positive impacts on Turkey and MENA regional trade. In contrast to this, the post- Arab Spring period had negative impacts on trade. Empirical results showed that soft power tools for policy activism such as visa liberalization programs, free trade agreements, preferential trade agreements, high-level economic corporation councils had positive impacts on bilateral trade. But coercive policies and being part of regional conflict had negative impacts on bilateral trade.