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Coronavirus helped Turkish economy: The European market has changed the route



International Trade Specialist, Faculty Member, Dr. Hazar Dördüncü, who mentioned that the one percent loss in the Chinese economy due to coronavirus is expected to affect the Asian countries the most, said, "Though only India and Turkey is expected to be positively affected in a small proportion".

The Covid-19 virus, which originates in Wuhan, China, continues to threaten the world. The virus, which is closely watched by the entire world, reached Turkey's neighbor Iran and Iraq after Asia and Europe.

Turkey closed its border gates on February 23 because of increased cases of corona virus in Iran. Airline companies have also announced that they have canceled Iran flights. By interpreting how these incidents affect economic relations between Iran and Turkey, Nişantaşı University Department of International Business and Trade Faculty Member, Dr. Hazar Dördüncü, said "As a result of the one-way closure of the border gates after the rapid increase of the Corona Virus cases in the country, the country allows only the passage of trucks with Iranian license plates, but not the ones with Turkish license plates. Also, the rail shipment has stopped. Since there is no evidence that viruses can infect through goods, especially the companies in Iran demand that at least the railroad is opened. Otherwise, Iranian firms supplying the products or raw materials through Turkey or using Turkey as a transit will fall into a difficult situation regarding the production processes.".

ECONOMY OF VAN AND NEIGHBOR PROVINCES WILL BE AFFECTED

By continuing his words, "Turkey's exports made transit through Iran or Iran’s exports made transit through Turkey are expected to be affected as negative due to the closure of the borders" Faculty Member, Dr. Hazar Dördüncü, said:

“We know, however, on Newroz Day activities, which will begin on March 20, particularly the large number of Iranian tourists are planning to visit Van city in Turkey, including in the context of a vacation and shopping. The economic density that happen in these times of the year is not expected to be occur in our other border cities, including Van primarily because of the Covid-19 and closed border gate between Turkey and Iran.”.

EUROPE AND ASIA EXCHANGES ARE IN LOSS

Covid-19 losses are experienced in European stock markets. We see that there have been serious decreases in all the world stock markets, not only in Europe but also in Asian countries, due to Covid-19.

By using the expressions; "The rapid increase in the number of infected people and the death rate being at 2 percent causes the countries to make radical decisions, bring travel restrictions, close border gates and stop production in factories." Dördüncü made explanations; "Along with the scientific and statistical information known about the disease, we observe that it is common in countries such as China, South Korea, Thailand, Taiwan, Malaysia, Vietnam, which we call labor intensive and which many western companies are in the main production position. We can say that the production of these firms decreased by 85 percent due to the factories in the quarantine region, which caused serious losses especially in the European stock markets where the shares of these firms are traded.”

THE LOSS IN THE CHINESE ECONOMY WILL HIT ASIAN COUNTRIES THE MOST

Faculty Member Dr. Hazar Dördüncü said the followings:

“An article published in the Financial Times pointed out that the East Asian countries such as South Korea, Thailand, Malaysia, Japan, Vietnam, Singapore and the Philippines are expected to be mostly negatively affected by the 1% decrease in the Chinese economy, while only India and Turkey are projected to be positively affected with a small proportion of 0.05. The reason for this is the interruption of the production of plants in East Asian countries due to the virus. Since production is suspended, products cannot be sent to the stores in the Western markets. The brands will attempt to resolve this problem by transferring their production to Turkey temporarily. Also, many countries have closed their borders or increased the controls too much due to the corona virus. Turkey’s closeness to the European logistics market is expected to create a positive impact as compared to other countries."

Release date: 26.02.2020