The ‘New’ Trade Theories and New Trading Opportunities for Turkey

Abstract The paper presents a selective review of the 'new' theories of international trade and examines their relevance to the new opportunities facing Turkey following the dramatic changes in the former Soviet Union (FSU). A gravity flow model is developed to assess the results of these changes. The main findings are that the FSU republics appear to be more 'natural' trade partners for Turkey, and hence there is a great potential for Turkey as well as the FSU republics to increase their trading arrangements. The policy implications of this redirection of trade are also discussed. Arabic Abstract: