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The Impact of Road Network on External Trade

Abstract. This article explores the relationship between highway network length and external trade with the EU. Annual data for Turkey's external trade with the EU comes from the Turkish Statistical Institute, and the data for highway network length is obtained from the Turkish Directorate of Highways. The data covers the years 1970–2008, and the relationship between highway network length (km) and Turkey's exports to the EU and Turkey's imports from the EU (EU 15, EU 25, and EU 27) are explored. The findings indicate that highway network length and Turkey's external trade with the EU coincide. The results confirm that there is a strong positive relationship between developments on the Turkish road network and Turkey's external trade with the EU both in the long and short run.