(Re)theorising European Integration under Globalisation:A Political Economy Approach

In the last two decades, the European Union has become wider and deeper. In addition, the number of regional integration arrangements has increased dramatically since early 1990s. Against these developments, the focus of regional and European integration studies has shifted away from the motives for and drivers of the integration process towards policy analysis or the comparative politics or regional blocs. This article attempts to bring the regional integration theory back in by proposing a political economy model that explains the dynamics of European integration, the reasons as to why governments agree to delegate authority to regional (EU) institutions, and the relationship between globalisation and integration

Asymmetric Unimodal Maps: Some Results from q-generalized Bit Cumulants

In this study, using q-generalized bit cumulants (q is the nonextensivity parameter of the recently introduced Tsallis statistics), we investigate the asymmetric unimodal maps. The study of the q-generalized second cumulant of these maps allows us to determine, for the first time, the dependence of the inflexion paremeter pairs (z_1,z_2) to the nonextensivity parameter q. This behaviour is found to be very similar to that of the logistic-like maps (z_1=z_2=z) reported recently by Costa et al. [Phys.Rev.E 56 (1997) 245].Comment: 6 pages with 3 fig

Liberalisation in a world of second best: evidence on European network industries

This article reports mixed results about the impacts of liberalisation in European network industries. Telecommunications prices have fallen and converged across EU-15, but electricity and gas prices have either increased or diverged. Productivity has increased, but mainly as a result of falling employment in absolute and relative terms. Liberalised industries are still characterised by high levels of market concentration and low levels of transparency and market integration. These findings are in line with the predictions of the theory of second best and suggest that the case for liberalisation of network industries has been oversold.Liberalisation, network industries, second-best, public policy, European Union

Long run relationship between entry and exit: time series evidence from Turkish manufacturing industry

This paper investigates the long run relationship between entry and exit using aggregate annual data from the Turkish manufacturing industry for the period 1968-2001. The time series properties of the data imply that simple OLS regressions may yield spurious results. We employ both bivariate and multivariate models to test for Granger causality. Utilizing relatively new time series techniques, we find that exit Granger causes entry in the long run, but not vice versa. However, unlike many empirical findings in the literature, past exit has a negative effect on entry. Entrants seem to be put off by past exit in the long run. Hence, our results do not seem to support the replacement effect in the Turkish manufacturing industry in general. None of the other variables included in the multivariate analysis has significant effects on entry or exit. The generalized impulse responses between entry and exit confirm Granger causality results.

Economic implications of Turkish EU membership: the advantages of tying one’s hands

This paper is a stock-taking exercise that brings together existing findings and new insights on the potential costs and benefits of EU membership for both Turkey and the EU. As far as Turkey is concerned, we focus on the costs and benefits of EU membership that are likely to result from compliance with the so-called EU conditionality. As far as EU is concerned, we focus on the costs and benefits associated with budgetary contributions and migration. Overall, we conclude that the impact of membership is likely to be positive for both parties, but the risks and returns are associated. In other words, Turkey stands to gain more than the EU but it is also the party that will be faced with higher adjustment costs.EU enlargement, economic costs and benefits of integration, migration, EU-Turkey relations

Turkish economic policy under AKP government: an assessment for 2002-2007

This article agrees with the received wisdom that the rule of AKP government has been associated with better macroeconomic outcomes in Turkey from 2002-2007. However, it argues that it is necessary to question the received wisdom for several reasons. First, AKP government’s contribution to Turkey’s economic performance from 2002-2007 was largely due to its consent to ‘tie its hands’ under the pre-existing International Monetary Fund (IMF) and European Union (EU) accession conditionality rather than because of AKP-specific policy innovation. Secondly, AKP’s attempt at policy innovation after 2004 have been associated with less impressive economic outcomes. Finally, the AKP has been unsuccessful in addressing the structural constraints and vulnerabilities that threaten the long-run sustainability of Turkey’s economic growth and its macroeconomic stability.Economic policy analysis; economic governance; inflation targeting; structural reforms; Turkish economy

Real Exchange Rate Fluctuations and Relative Prices in Turkey

Traditional theory puts forwards that real exchange rate fluctuations should result from the changes in the relative price of non-tradable goods since tradable goods' prices are to equalize among countries due to the law of one price. However, significant number of researches reported that in many cases, the contribution of tradable goods' prices is not negligible, or even surpass that of the non-tradable goods' prices. This paper studies the relation between the real exchange rate and relative prices for Turkey. The relation is found to be stronger with the relative price of tradable goods, unlike the traditional theory. But the proportion of the fluctuations in real exchange rates accounted for by relative non-tradable goods prices has increased in recent years. These findings imply the real exchange rates in Turkey to be driven by nominal factors, rather than real factors until recently.Real Exchange Rate Decomposition, Relative rices

Liberalisation in a world of second best: evidence on European network industries

This article reports mixed results about the impacts of liberalisation in European network industries. Telecommunications prices have fallen and converged across EU-15, but electricity and gas prices have either increased or diverged. Productivity has increased, but mainly as a result of falling employment in absolute and relative terms. Liberalised industries are still characterised by high levels of market concentration and low levels of transparency and market integration. These findings are in line with the predictions of the theory of second best and suggest that the case for liberalisation of network industries has been oversold