The Welfare and Distribution Impacts of International Agricultural Trade Policies: an Analysis of Turkey’S Integration Into the European Union
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Louisiana State University LSU Digital Commons LSU Historical Dissertations and Theses Graduate School 2000 The elW fare and Distribution Impacts of International Agricultural Trade Policies: an Analysis of Turkey's Integration Into the European Union. Cemal Atici Louisiana State University and Agricultural & Mechanical College Follow this and additional works at: https://digitalcommons.lsu.edu/gradschool_disstheses Recommended Citation Atici, Cemal, "The eW lfare and Distribution Impacts of International Agricultural Trade Policies: an Analysis of Turkey's Integration Into the European Union." (2000). LSU Historical Dissertations and Theses. 7139. https://digitalcommons.lsu.edu/gradschool_disstheses/7139 This Dissertation is brought to you for free and open access by the Graduate School at LSU Digital Commons. It has been accepted for inclusion in LSU Historical Dissertations and Theses by an authorized administrator of LSU Digital Commons. 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Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. THE WELFARE AND DISTRIBUTION IMPACTS OF INTERNATIONAL AGRICULTURAL TRADE POLICIES: AN ANALYSIS OF TURKEY’S INTEGRATION INTO THE EUROPEAN UNION A Dissertation Submitted to the Graduate Faculty of the Louisiana State University and Agricultural and Mechanical College in partial fulfillment of the requirements for the degree of Doctor of Philosophy in The Department of Agricultural Economics and Agribusiness by Cemal Atici B.S., Ankara University, 1992 M.S., Louisiana State University, 1996 May, 2000 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. UMI Number 9963934 ___ (® UMI UMI Microform 9963934 Copyright 2000 by Bell & Howell Information and Learning Company. All rights reserved. This microform edition is protected against unauthorized copying under Title 17, United States Code. Bell & Howell Information and Learning Company 300 North Zeeb Road P.O. Box 1346 Ann Arbor, Ml 48106-1346 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ACKNOWLEDGEMENTS During my study at LSU, I have received help from many sources. I would like to thank my long time major professor Dr. Kennedy for his advices and helpful approach throughout my study. I thank my committee members for their valuable suggestions on this research. I thank Mr. Lai for his sincere help that I received when I needed. 1 thank my sponsors Adnan Menderes University and Turkish Council of Higher Education (YOK) who supported my education and believed that the best investment is the one made in humans. And above all, I thank my parents and siblings whose love, support, and best wishes helped me to stand all difficulties I faced and inspired me to finish the job I undertook. ii Reproduced with permission of the copyright owner. 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TABLE OF CONTENTS ACKNOWLEDGEMENTS....................................................................................................ii LIST OF TABLES................................................................................................................... v LIST OF FIGURES............................................................................................................... vi ABSTRACT...........................................................................................................................vii CHAPTER 1 INTRODUCTION............................................................................................... 1 Problem Statement ..........................................................................................2 Justification ..................................................................................................... 3 Objectives........................................................................................................4 Procedures .......................................................................................................4 Literature Review............................................................................................5 Outline of Dissertation .................................................................................. 16 2 AGRICULTURAL POLICY REVIEW OF TURKEY...................................17 Turkey’s Trade Policy Experience ................................................................21 Changes in EU’s Agricultural Policies ....................................................... 22 Turkey EU Relations ..................................................................................... 24 Trade Liberalization and the WTO ...............................................................27 Globalization and the Agricultural Sector ................................................. 29 3 THEORETICAL MODEL.................................................................................32 Gains From Trade ......................................................................................... 32 Economic Integration ...................................................................................34 Agricultural Policies and Income Effects ................................................... 41 Government Policies to Reduce Income Disparities ................................ 42 Food Prices and Consumers .........................................................................45 Design and Implementation of Agricultural Policies in Developing Countries ..................................................................................................46 Key Policy Issues Confronting Developing Countries ............................. 48 Theoretical Framework ................................................................................49 Estimation of PPF Weights ..........................................................................56 iii Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 4 EMPIRICAL ANALYSIS................................................................................ 58 Methods of Measurement for Non-Tariff Barriers .....................................60 Inequality Index and Gini Coefficient .......................................................... 66 Determination of the Scenarios ...................................................................69 Results.......................................................................................................... 71 Income Distribution Effects ........................................................................81 5 SUMMARY AND CONCLUSIONS............................................................ 89 Limitations and Further Study ....................................................................95 REFERENCES.....................................................................................................................99 APPENDIXES.................................................................................................................... 106 APPENDIX 1. DATA TABLES...................................................................................106 APPENDIX 2. MISS MODEL OUTPUTS.................................................................114 VITA.................................................................................................................................... 159 iv Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. LIST OF TABLES 1. Agricultural Production of Turkey- Major Crops, 1992-1995 (1000 tons) ................17 2. Agricultural Exports from Turkey, 1992-1995 (Smillion) .........................................18 3. Agricultural Imports of Turkey, 1992-1995 ($ million) .............................................