Greek–Turkish economic relations in a changing regional and international context

Abstract

This chapter attempts to shed light to a nascent sub-field in the analysis of Greek–Turkish relations, namely the evolution, development and prospects of economic relations between the two states. It begins by discussing developments in economic relations measured in terms of bilateral trade volumes, mutual foreign direct investment flows as well as cooperation in tourism. The chapter introduces an analytical angle by elaborating on change and continuity in the post-1999 era fuelled by the changing political and economic context the two countries have faced. It argues that the political economy of Greek–Turkish relations has acquired a qualitatively different character compared to the past, not least as a result of heightened interaction and converging trends in the political economy characteristics of the two countries. Tourism flows have flourished between the two countries due to its relative isolation from political problems and tourism’s high benefit, and respective reliance, for the two countries.