Table Of ContentOUPCORRECTEDPROOF–FINAL,20/5/2016,SPi
The Liberalization of Transportation Services
in the EU and Turkey
OUPCORRECTEDPROOF–FINAL,20/5/2016,SPi
OUPCORRECTEDPROOF–FINAL,20/5/2016,SPi
The Liberalization of Transportation
Services in the EU and Turkey
Sübidey Togan
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Preface and Acknowledgements
Thisbookisabouttheliberalizationoftransportationservices.Sincebarriers
to trade in services are typically regulatory in nature, and the outcomes of
services liberalization depend heavily on the regulatory environments, the
study concentrates on analysing the effects of changes in regulatory frame-
works. It studies not only the effects of unilateral liberalization within the
context of international trade but also the effects of liberalizing transport
services within a regional context. The book provides a thorough discussion
ofinternationalandregionalrulesandregulationsinroadtransportation,rail
transportation,maritimetransportation,andairtransportation.Whenconsid-
eringtheliberalizationoftransportserviceswithinaregionalcontext,thestudy
concentratesonthe caseofthe European Union (EU)andmakesreferenceto
Turkey,acandidatetoEUaccession.
Chapter1beginswithadiscussionoftherelationsbetweentradecostsand
tradeandeconomicgrowth,andexploresthehistoricalforcesthatcreatedthe
present world trading system by concentrating on the economic history of
the relation between trade costs and trade, emphasizing developments in
transportation costs over the last millennium. Chapter2 explores transport
infrastructure, market structure, and competition in the Turkish road, rail,
maritime,andairtransportationsectors,andChapter3through6concentrate
on analysing the regulatory frameworks in the road, rail, maritime, and air
transportationsectors byconsidering theinternational rulesand regulations
as well as the regulatory frameworks prevailing in the EU and Turkey. Since
liberalizing transportation services between the EU and Turkey can be
achieved only through harmonizing the respective regulatory frameworks
(which requires Turkey to adopt the EU rules and regulations in different
transportationsectorsandstrictlyimplementthem),Chapter7quantitatively
studiestheeffectsofliberalizationinthosesectors.Thechapterfirstprovides
an analysis of opening up the Turkish transport sectors and determines
the tariff equivalents of barriers to trade in the different sectors. Then, the
chapteranalysestheeffectsofliberalizationusingacomputablegeneralequi-
librium model. Finally, the chapter considers the economic impact of infra-
structuredevelopment.
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PrefaceandAcknowledgements
I would like to express my thanks to Bernard Hoekman of the Robert
SchumanCenterattheEuropeanUniversityInstituteinFlorenceforsparking
mystudyof services liberalization.Thepresent workstarted with the Forum
Euromediterranéen des Instituts Sciences Economiques (FEMISE) project
‘Impact of Liberalization of Trade in Services: Banking, Telecommunications
andMaritimeTransportinEgypt,Morocco,TunisiaandTurkey’(FEM22-02).
That study was later extended with the Economic Research Forum (ERF)
project ‘Quantifying the Impact of Liberalization of Services and Network
Industries within the Context of EU Integration in Turkey’ (ERF Project No:
ERF03-TK-2002), theFEMISEprojectFEM32-02 ‘LiberalizationofServicesin
PolandandTurkey:AComparativeAnalysis’,andtheFEMISEproject‘Facili-
tationofTransportationinTurkeyandPoland:AComparativeStudy’(FEM35-
09).FinancialsupportfromFEMISE,supportedbytheEuropeanCommission,
and from ERF is greatly appreciated. The views expressed in this book, how-
ever,donotnecessarilyrepresenttheofficialpositionoftheCommissionnor
thatofFEMISEorERF.
This book may carry my name alone, but its contents were shaped by the
contributions and insights of Professor Jan Michalek of the University of
Warsaw,ProfessorNergizDinçerofTEDUniversityinAnkara,andDr.Güzin
BayaroftheMinistryoftheEconomyinTurkey.Iampleasedtoacknowledge
theircontributionshere.
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Contents
ListofFigures xi
ListofTables xiii
1. TransportationCosts,Trade,andGlobalValueChains 1
1.1 AnEconomicHistoryofTradeandTradeCostswithEmphasison
TransportationCosts 3
1.2 TransportCostsandInternationalTrade 12
1.3 GlobalValueChains 21
1.4 Conclusion 29
Annex1: TradeandTransportationCostsintheRicardianModel 31
Annex2: GlobalValueChainAnalysis 34
2. TransportSectorsinTurkey 37
2.1 AnOverviewofTurkishTransportSectors 37
2.2 Inter-IndustryLinkages 61
2.3 FirmsinTransportSectors 64
2.4 StateofCompetition:EvidenceofMark-Ups 72
2.5 Conclusion 76
3. TheRegulatoryFrameworkinRoadFreightTransportation 77
3.1 RoadFreightTransportationServices 77
3.2 BilateralandMultilateralRoadFreightTransportAgreements 80
3.3 EuropeanUnionRulesandRegulations 90
3.4 TheRegulatoryFrameworkintheTurkishRoad
TransportationSector 106
3.5 Conclusion 122
4. TheRegulatoryFrameworkinRailTransportServices 125
4.1 RailwayServices 126
4.2 InternationalRulesandRegulations 130
4.3 RulesandRegulationsintheEuropeanUnion 136
4.4 TheRegulatoryFrameworkintheTurkishRail
TransportationSector 150
4.5 Conclusion 158
