Running head: IMPACTS OF SYRIAN REFUGESS ON TURKISH ECONOMY 1
Impacts of Syrian Refugees on Turkish Economy
IMPACTS OF SYRIAN REFUGESS
IMPACTS OF SYRIAN REFUGESS
Abstract
This paper intends to study on the economic impact of the Syrian refugees to Turkish economy.
Both positive and negative impacts are going to be shown with the recent data and examples.
Studying only the economic impacts of the refugees is not easy. The topic requires a broader
research to be understood completely. However, our concern is economic impacts, and other
factors are going to be passed over during the paper. In some part of the paper, relations between
Turkey and Syria are mentioned; also, in order to comprehend the topic social impacts are
studied shortly, as well.
IMPACTS OF SYRIAN REFUGESS
Impacts of Syrian Refugees on Turkish Economy
Turkey is member of the OECD and it is the 18th biggest economy in the world.
According to Phillppe Perchoc’s 2015 European Parliament report Turkey’s GDP growth is
stable at 4% and Turkey is the 5th biggest trading partner of European Union. In the past 30 year,
Turkish economy transformed from agricultural economy to diversified industry and service-
oriented economy (Perchoc, 2015). Also as it is mentioned on The Economist article, since 2002
Turkish economy showed a strong growth with a low inflation (“Flightless”, 2015). Retrieved
from http://www.economist.com/news/finance-and-economics/21660166-political-worries-
increase-fragility-economy-badly-need. End of IMF bailed-out, solid and well-capitalized banks
and other improvements appealed the foreign investments. Turkish economy raised and had great
success between 2002 and 2006 (Sidar, 2015). Despite to global economic difficulties, Turkish
economy was able to acquire investment grades from some agencies (“Flightless”, 2015).
“Turkish economy expanded by 9.2 percent in 2010 and 8.8 percent in 2011” (Dombey, 2014).
With a positive economy atmosphere, Turkish economy gained self-confidence and Turkish
President R. Tayyip Erdogan promised that Turkey is going to be one of the world’s ten biggest
economies by 2023. However, even though Turkish economy had great success, its economy is
still dependent on foreign investments and it is vulnerable to external factors (Perchoc, 2015).
The US and EU monetary policies and changes on geopolitical conditions are still highly
effective on Turkish economy (Sirdar, 2015). At the moment, the major external factor is Syrian
Civil War, and without any doubt, this crisis has affected Turkish Economy in many
socioeconomic ways.
Turkey has its longest border with Syria, which is 711 km. This situation makes Syria an
important geopolitical neighbor for Turkey. However, despite of being a neighbor country with a
IMPACTS OF SYRIAN REFUGESS
considerable border length, Turkey and Syria did not have good relations till 2000s (Cagaptay,
2014). Turkey and Syria have had complicated relations. Controlling the flow of the water, lack
of corporation for the fight against the terrorist organizations and minorities between two
countries have been major problems for Turkey and Syria. After 1998-1999 Adana agreements,
Syria and Turkey strengthened their economic relations for the future opportunities (Scheller,
2013). This agreement is important for showing these two countries’ economic intension. After
the 2002 Turkish election, the relations between these two countries changed positively. Justice
and Development Party (AKP) had a political power and became the ruling party in short time.
Contrary to former Turkish politics, AKP had tried to build positive relations between Syria and
Turkey. Visa procedure was eased for Syrians; trading and economic relations were strengthened,
and tourism between Syria and Turkey became important. With the positive political atmosphere,
