The political economy of Greek-Turkish relations

Abstract

This thesis following the post-1999 Greek-Turkish rapprochement takes as a starting point the expansion of economic exchanges between the two states and seeks to explore possible linkages between economic and political relations. This expansion of economic relations led to the creation of hopes in the political and business elites that economic cooperation can have a potent normalizing effect on contentious issues that for decades have divided the two countries. This thesis -through an evaluation of the two states trade, Foreign Direct Investment, tourism and energy cooperation- argues that; there are economic limitations in these fields that should first taken under consideration before one move on to the political problems; and further that it is unlikely for economic cooperation by itself to lend long-held political positions and relations vulnerable to economic interests, especially in the more sensitive issues like the Aegean disputes.