The role of European Union resources in sustainable development

Commencing from the Ankara Agreement to this day, there have been certain alterations in regards to the structure and implementation of the association relevance apropos the financial assistances from European Union to Turkey. The grounds for these alterations refers to the transition of the EU to the loan-grant method with respects to draft source through abandoning the financial protocol procedure of the financial assistance operation methodology and making progress in the process of advancement of relations with Turkey. Within this time period, the establishment of the Customs Union in 1996, qualifying as a candidate country in 199 and the commencement of negotiations in 2005 stand as crucial milestones for Turkey which, so far, gradually rendered the financial assistances as significant for Turkey. In this study, the impact of financial assistances for Turkey's economic growth was analyzed. In order to identify the role of European Union funds in Turkey's sustainable development, the time sequence methodology was utilized. Concordant to analysis of the static tests, it is then determined that there is a long term relationship between the variables. As a result of Toda Yamamoto Test, it was ascertained that there is a one-way causality relationship from financial aid to GDP. Keywords: Financial Aid, European Union, Sustainable Economy.