Abstract:

This study analyses the economic relationship between Turkey and the Balkan countries, focusing on trade and foreign direct investment relationships among the countries over the period from 2006 to 2013. The results shows that Turkey`s economic relationships with the region strengthened rapidly over the sample period. While Turkey`s trade and investments has increased significantly in the region, it has been observed that there were diversification in sectorial and geographical terms as well as fluctuations on a country basis. In terms of investments, Turkey is not among the top five in any country except Albania and Kosovo. However, there are still great opportunities for Turkey to invest in the region. Given that Turkey`s trade and investments with the region increases over time, it can benefit from encouraging exports and investments in the region, but it should also be careful over its trade balance.   Keywords: Turkey, Balkans, Economic Integration, Foreign Trade, FDI

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