This study explains and tests structural break of Turkey’s relative trade with the European Union countries for the period of 1982-2007. As a result, the data indicated the evidence of structural break and alternating elasticities’ signs in estimations based upon error component model. After...

Turkey has been highly dependable on foreign production goods for Its domestic production since 1980. This necessitates estimation of income, relative import price, exchange rate and term of trade elasticities of investment and intermediate goods import demand to manage trade deficit. Assuming...