Market Integration between Turkey and Eurozone Countries

Nicholas Apergis, Chi Keung Marco Lau, Fatma Öğücü Şen, Shixuan Wang

    Research output: Contribution to journalArticlepeer-review

    Abstract

    This study examines the degree of integration of the Turkish economy and European markets as well as the nature of price convergences across major cities for common categories of goods. A series of unit root tests are performed to assess these price convergences by considering non-linearity, cross-sectional correlations, and structural breaks. We find that the Turkish and European markets are well-integrated. Moreover, Turkey’s highest rate of convergence occurs in the fresh fruits and vegetables (supermarkets) and canned goods (mid-priced stores) categories, suggesting arbitrage activities exist across common categories of goods.

    Original languageEnglish
    JournalEmerging Markets Finance and Trade
    DOIs
    Publication statusPublished - 19 Sept 2019

    Bibliographical note

    Publisher Copyright:
    ©, Copyright © Taylor & Francis Group, LLC.

    Copyright:
    Copyright 2019 Elsevier B.V., All rights reserved.

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