Page 8 - Azerbaijan State University of Economics

P.M.Ignatiev, P.V.Bovsunivskyi: Turkey and Iran: political rivalry and economic cooperation
through the ages

cooperation in military operations against the representatives of this restive minority,

but also for the economic competition in times of peace.

Economically Turkey is in much better shape than Iran. This can be explained

by the successful performance of a stable single party government in the last decade,

which carried out many mega projects, exported construction services abroad and

facilitated the development of international tourism. For many years the country

demonstrated 6 per cent growth of GDP and was the second best performer in Asia

only after China. During 2008-2014 Turkish authorities created at least 6 millions of

jobs. The falling energy prices in position to provide another boost to powerful

Turkish economy by saving 25 billion dollars on the import of «black gold» [6]. On

the contrary, Iran continues to suffer due to same factor, since sales of oil, gas and

petrochemicals provide 70 per cent of export revenues. Unfortunately, this country

supplies abroad only 1.3 million barrels daily because of international sanctions [7].

Therefore Islamic Republic is interested in the development of trade ties with its

closest neighbours – Iraq and Turkey, which possess economies of size and not shy

away from a contraband.

Geopolitically both states are not only complimentary but also competitive.

Turkey provides the «window» for Asian countries to Europe, controls Black Sea

Straits and simultaneously borders Iran and the Midlle East. Iran, with its long

border line in the Caucasus and Central Asia, can be considered a direct competitor

of Turkish companies in the Post-Soviet space. On the other hand, both countries

exhibit strong interdependence. Iran has one of the biggest oil deposits in the world

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