Effects of Turkey's Accession to the European Union on Hazelnut Markets

Abstract

This article aims to explore the effects of liberalizing hazelnut trade between Turkey and the EU. The welfare effects were calculated by using static partial equilibrium analysis in the Marshallian economic surplus framework to 1980-2006 data. The results show that adaptation of the EU's policy and liberalization of the hazelnut markets would increase Turkey's hazelnut production by 11.6% in 2014 and 1.62% in 2023 and decrease the EU's production by 0.3% in the same years. However, domestic consumption and export of both sides would be affected to a limited extent. The farmers of Turkey would gain about € 175 million in 2014 and this gain would be € 73 million in 2023. On the other hand, producers in the EU would lose about € 5 million for the same years. While the government's gain in Turkey would be € 210 million, resulting from abolishing the intervention purchases, the government losses in the EU would be € 53 million because of area payments for Turkey in 2014. The net social gain for Turkey would be € 380 million and the net social loss for the EU would be € 80 million.