Abstract
Turkey and Europe are closely interlinked through migration, trade and investment flows. In the year 2000, the interrelationships entered a new phase. Return migration of Turkish migrants to Turkey set in, of often well-educated second-generation migrants, triggered by the fast economic growth and shortages of skilled labour in Turkey. At the same time continued family migration to Europe and Turkish business start-ups in Europe promote trade between Turkey and Europe due to preference and network channels. While economic growth in Turkey is dynamic, it is also volatile, depending on foreign capital. The major challenge for stable and sustainable economic growth is, however, the low labour force participation rate of women and the slow progress in the educational attainment level of its workforce.
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