International trade and strategic behaviour: a game theoretical analysis of the trade dispute between Turkey and Russia
MetadataShow full item record
CitationTaşbaşı, A. (2017). International trade and strategic behaviour: A game theoretical analysis of the trade dispute between Turkey and Russia. Economic Research-Ekonomska Istraživanja, 30(1), 581-595. doi:10.1080/1331677X.2017.1305769
Starting from the premise that strategic interactions between countries influence trade policy decisions, this paper is a first attempt at exploring the possible outcomes of a trade dispute between Turkey and Russia, assuming that Turkey can lodge a complaint about Russia's protectionist move to the WTO Dispute Settlement Body (DSB). Employing the course of events during the recent economic conflict between the two countries, the article models the stages of a trade game wherein players exhibit non-cooperative behaviour. It finds that Turkey reporting Russia to the DSB depends on the cost of the dispute, which represents both economic losses and losses that can be considered disadvantages in a broader sense. The results show that in trade relations where asymmetric interdependence is observed, if both parties mutually commit to an international organisation, binding regulations may provide strategy options that are otherwise infeasible for the disadvantaged player.
SourceEconomic Research-Ekonomska Istrazivanja
Showing items related by title, author, creator and subject.
What would normalisation of economic relations between Mashrek countries, Turkey and Israel imply? This article examines the potential for economic cooperation among Mashrek countries, Turkey and Israel in the fields of trade in goods and services both separately and across-field. It first describes the macroeconomic ...
Şen Taşbaşı, Aslı (Int organization center acad research, 2014-02-03)This paper aims at analyzing the economic dimension of the pace of globalization for Turkey by using the KOF Index of Globalization between the years 2005 and 2012. Indices and variables to be taken into consideration are ...
Do international trade and labor standards ameliorate synchronously?Estimation of labor demand elasticity in Turkey The broad objective of this paper is to examine the challenges faced by the Turkish labor market in the aftermath of the so-called trade liberalization period, particularly questioning whether a prominent change in pattern ...