Article Sidebar

Submitted
February 3, 2022
Accepted
February 22, 2023
Published
April 6, 2023
Download
Full text PDF
Statistic
Read Counter : 642 Download : 1737

Downloads

Download data is not yet available.

Main Article Content

Abstract

Purpose ― The main objective of this study is to explore the relationship between bilateral official development assistance and the export of Turkey to 18 Turkish aid recipient countries between 1998 and 2019.


Methods ― The study employs the gravity model of international trade to capture the effect of official development assistance on Turkish export to its aid recipient countries and utilizes Panel data econometric analysis.


Findings ― The official development assistance (ODA) remains statistically significant across the models, indicating that ODA is one of the significant drivers of Turkish bilateral trade with the aid recipient countries.


Implications ― The study argues that Turkey applied ODA as a foreign policy tool to access new markets in the Middle East, Balkans, Africa, and Asia. Turkish exports to developing countries increased due to the upsurged country's foreign aid donation to its recipients.


Originality ― This study deviates from other studies in the literature by empirically examining the relationship between bilateral Official development assistance and the export of Turkey.

Keywords

Gravity Model Official Development Assistance Export Turkey.

Article Details

License

Copyright (c) 2023 Arab Dahir Hassan

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).

Creative Commons License

Economic Journal of Emerging Markets by Center for Economic Studies, Universitas Islam Indonesia is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Author Biographies

Arab Dahir Hassan, Ibnu Haldun University, Başakşehir, Turkey

Arab Dahir Hassan is a Ph.D. candidate at the Graduate School of Ibnu Haldun University. 

Esra Dil, Sakarya University, Sakarya, Turkey

Assistant Professor at the international trade department of Sakarya.

How to Cite
Hassan, A. D., & Esra Dil. (2023). Empirical analysis of the impact of Turkish bilateral official development assistance on export. Economic Journal of Emerging Markets, 15(1), 16–27. https://doi.org/10.20885/ejem.vol15.iss1.art2
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Akpınar, P. (2013). Turkey’s peacebuilding in Somalia: The limits of humanitarian diplomacy. Turkish Studies, 14(4), 735–757. https://doi.org/10.1080/14683849.2013.863448
  2. Alesina, A., & Dollar, D. (2000). Who gives foreign aid to whom and why? Journal of Economic Growth, 5(1), 33–63. https://doi.org/10.1023/A:1009874203400
  3. Apodaca, C. (2017). Foreign aid as foreign policy tool. Oxford University Press. https://doi.org/10.1093/acrefore/9780190228637.013.332
  4. Arvin, B. M., & Baum, C. (1997). Tied and untied foreign aid: A theoretical and empirical analysis. Keio Economic Studies, 34(2), 71–79.
  5. Baird, T. (2016). The geopolitics of Turkey’s ‘humanitarian diplomacy’ in Somalia: A critique. Review of African Political Economy, 43(149), 470–477. https://doi.org/10.1080/03056244.2015.1084913
  6. Brada, J. C., & Méndez, J. A. (1985). Economic integration among developed, developing and centrally planned economies: A comparative analysis. The Review of Economics and Statistics, 67(4), 549–556. https://doi.org/10.2307/1924798
  7. Breusch, T. S., & Pagan, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The Review of Economic Studies, 47(1), 239–253. https://doi.org/10.2307/2297111
  8. Çevik, S. B. (2014). Turkey’s state-based foreign aid: Narrating “Turkey’s story.” Rising Powers Quarterly, 1(2), 55–67.
  9. Çevik, Senem B. (2018). Narrating Turkey’s story: Communicating its nation brand through public diplomacy. In E. Parlar Dal (Ed.) (pp. 213–230). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-319-72365-5_10
  10. Davutoğlu, A. (2013). Turkey’s humanitarian diplomacy: Objectives, challenges and prospects. Nationalities Papers, 41(6), 865–870. https://doi.org/10.1080/00905992.2013.857299
  11. Endo, K., & Murashkin, N. (2022). Japan’s infrastructure export and development cooperation: The role of ODA loan projects in the 2010s. Australian Journal of International Affairs, 0(0), 1–21. https://doi.org/10.1080/10357718.2022.2064972
  12. Gulrajani, N., & Calleja, R. (2019). Understanding donor motivations: Developing the principled aid index. Overseas Development Institute. Retrieved from https://apo.org.au/node/227586
  13. Güngör, B. (2021). Foreign aid during the COVID-19 pandemic: evidence from Turkey. Southeast European and Black Sea Studies, 21(3), 337–352. https://doi.org/10.1080/14683857.2021.1900668
  14. Inançli, S., & Mahamat Addi, H. (2019). Trade creation and trade diversion effects in the economic community of Central African States. African Development Review, 31(3), 307–317. https://doi.org/10.1111/1467-8268.12391
  15. Kavakli, K. C. (2018). Domestic politics and the motives of emerging donors: Evidence from Turkish foreign aid. Political Research Quarterly, 71(3), 614–627. https://doi.org/10.1177/1065912917750783
  16. Korkmaz, A., & Zengin, H. (2020). The political economy of Turkish foreign aid. In E. Parlar Dal (Ed.), Turkey’s political economy in the 21st century (pp. 133–161). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-030-27632-4_6
  17. Lo Turco, A., & Maggioni, D. (2018). Effects of Islamic religiosity on bilateral trust in trade: The case of Turkish exports. Journal of Comparative Economics, 46(4), 947–965. https://doi.org/10.1016/j.jce.2018.02.001
  18. Martinez-Zarzoso, I. (2019). Effects of foreign aid on income through international trade. Politics and Governance, 7(2), 29–52. https://doi.org/10.17645/pag.v7i2.1830
  19. Martínez-Zarzoso, I., Nowak-Lehmann D., F., & Klasen, S. (2010). The economic benefits of giving aid in terms of donors exports. In Proceedings of the German Development Economics Conference, Hannover 2010. Göttingen: Verein für Socialpolitik, Ausschuss für Entwicklungsländer. Retrieved from http://hdl.handle.net/10419/39976
  20. Martínez-Zarzoso, I., Nowak-Lehmann D., F., Klasen, S., & Johannsen, F. (2016). Does German development aid boost German exports and German employment? A sectoral level analysis. Jahrbücher Für Nationalökonomie Und Statistik, 236(1), 71–94. https://doi.org/10.1515/jbnst-2015-1003
  21. Martínez-Zarzoso, I., Nowak-Lehmann D., F., Parra, M. D., & Klasen, S. (2014). Does aid promote donor exports? Commercial interest versus instrumental philanthropy. Kyklos, 67(4), 559–587. https://doi.org/10.1111/kykl.12068
  22. Martínez-Zarzoso, Inma, Nowak-Lehmann, F. D., & Klasen, S. (2017). Aid and its impact on the donor’s export industry: The dutch case. The European Journal of Development Research, 29(4), 769–786. https://doi.org/10.1057/s41287-016-0060-5
  23. Mehmetcik, H., & Pekel, S. (2020). The determinants of Turkish foreign aid: An empirical analysis. In E. Parlar Dal (Ed.), Turkey’s political economy in the 21st century (pp. 195–213). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-030-27632-4_8
  24. Nasre Esfahani, M., & Rasoulinezhad, E. (2017). Iran’s trade policy of Asianization and de-Europeanization under sanctions. Journal of Economic Studies, 44(4), 552–567. https://doi.org/10.1108/JES-05-2016-0101
  25. Nilsson, J. (1998). The emergence of new organizational models for agricultural cooperatives. Swedish Journal of Agricultural Research, 28(1), 39–47.
  26. Noh, B., & Heshmati, A. (2017). Does official development assistance affect donor’s export? Case of Korea (IZA Discussion Paper No. 10553). https://doi.org/10.2139/ssrn.2923636
  27. Nowak-Lehmann D., F., Martínez-Zarzoso, I., Herzer, D., Klasen, S., & Cardozo, A. (2013). Does foreign aid promote recipient exports to donor countries? Review of World Economics, 149(3), 505–535. https://doi.org/10.1007/s10290-013-0155-4
  28. Nowak-Lehmann D., Felicitas, Martínez-Zarzoso, I., Klasen, S., & Herzer, D. (2009). Aid and trade – A donor’s perspective. The Journal of Development Studies, 45(7), 1184–1202. https://doi.org/10.1080/00220380902952407
  29. Otor, S. A., & Dornan, M. (2017). How does foreign aid impact Australian exports in the long-run? (SSRN Scholarly Paper No. 3044133). https://doi.org/10.2139/ssrn.3044133
  30. Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels (Cambridge Working Papers No. 0435).
  31. Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross‐section dependence. Journal of Applied Econometrics, 22(2), 265–312. https://doi.org/10.1002/jae.951
  32. Pesaran, M Hashem. (2021). General diagnostic tests for cross-sectional dependence in panels. Empirical Economics, 60(1), 13–50. https://doi.org/10.1007/s00181-020-01875-7
  33. Pöyhönen, P. (1963). A tentative model for the volume of trade between countries. Weltwirtschaftliches Archiv, 90, 93–100.
  34. Skärvall, L. (2012). Does Swedish aid help or hinder bilateral trade: An empirical study on the effect of official development assistance and aid for trade. Uppsala University. Retrieved from http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-168242
  35. Tinbergen, J. (1962). Shaping the world economy: Suggestions for an international economic policy. New York: The Twentieth Century Fund.
  36. Zarin-Nejadan, M., Monteiro, J.-A., & Noormamode, S. (2008). The impact of official development assistance on donor country exports: Some empirical evidence for Switzerland. University of Neuchâtel. Retrieved from https://www.unine.ch/files/live/sites/irene/files/shared/documents/Publications/Rapports/MZ-rapport-DDC-2008.pdf
No Related Submission Found