Shuttling More than Goods: Collective Support among Turkish-Bulgarian Shuttle Traders

Nikolina Stoykova

doi:10.5642/urceu.201501.09

Abstract

Given that the European Union is a free trade, market-oriented economic zone that should, theoretically, eliminate market distortions that fuel the informal economy, why are we seeing continued participation in the informal economy, specifically, the shuttle trade between Bulgaria and Turkey? Many scholars frequently cite price distortions, market gaps, lucrative exchange rates, and economic survival as prominent reasons, however, these explanations do not suffice in explaining why the shuttle trade thrives 25 years after the communist collapse in Bulgaria. Through the use of meta-linguistic analysis of the interviews and analysis of the individuals that I interviewed, I argue that, in addition to being a viable method of income supplementation, the shuttle trade also serves as a platform for social support and identity reconciliation for Turkish-Bulgarian participants. Collective nostalgia about the communist past and similar post-communist experiences and a strong sense of interpersonal trust serve to integrate shuttle traders, who invest in social capital via the shuttle trade.

Highlights

Scholars have shown that the shuttle trade is a phenomenon that emerges when there is a market gap and when there are significant price distortions in a relatively small region, such as the borderland between Bulgaria and Turkey
None of the scholars that we have looked at have addressed the impact that ethnic migration patterns, in particular, the opening up of Bulgaria’s borders after the fall of Communism, has had on the stimulation of participation in the shuttle trade, among Turkish-Bulgarians
To explain the impact with regard to the emergence and sustainability of the shuttle trade, keeping in mind that trade primarily engages the Turkish minority in Bulgaria, this section focuses on several factors that contribute to informal economic participation, namely the decline in institutional trust, the role of post-communist nostalgia, and the expansion of social capital and interpersonal trust as the basis of informality

Summary

Introduction

Scholars have shown that the shuttle trade is a phenomenon that emerges when there is a market gap and when there are significant price distortions in a relatively small region, such as the borderland between Bulgaria and Turkey. Collective nostalgia about the communist past and similar post-communist experiences and a strong sense of interpersonal trust serve to integrate shuttle traders, who invest in social capital via the shuttle trade.

Results

Conclusion