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Trade Relations with Syria after the Refugee Influx Evaluation Note / Esra Özpınar, Seda Başıhoş, Aycan Kulaksız  
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10/11/2015 - Viewed 1563 times

 

"Immigration is a multi-dimensional phenomenon that should be considered in its various aspects, including the social, the cultural, security, health, education and economy. At its simplest form, immigrants integrate to the economy of the host country either by being forced to agree to lower wages in existing jobs as they lack work permits, or, for those who have a certain amount of capital, by building partnerships with merchants or businessmen in the host country. This article seeks to understand what kind of an impact immigrants have on the economy of the host country when they engage in commercial enterprises. We will explain this through the data concerning immigrants from Syria to Turkey.

According to the studies in the literature, the trade relations between the regions that receive immigration and the home countries of immigrants persist. Most of the newly established partnerships engage in trade, mainly in the form of exports, which leads to an increase in trade between the two destinations. This is explained by a drop in trading costs. Certain factors need to be taken into consideration during engagement in trade. Factors like the market structure, needs, demands, purchasing power, consumption habits, language, communication facilities, marketing strategy etc. come into play for exports. Each of these factors impose a certain cost. The aggregate cost, in turn, constitutes the trading cost. From this perspective, the trade (exports) that immigrants do with their home countries suppresses trading costs. The fact that incoming immigrants are familiar with the business environment, legal regulations and market dynamics of the trade counterpart accelerates commercial transactions. backsliding in democracy, fundamental freedoms and rule of law, the domestic peace in the country and for attaining economic stability."

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