Abstract:

Economic development is undoubtedly developing economies’ primary goal and free market economy is a must to serve that purpose. In today’s global world governments should leave more space in economic activities to market actors by promoting i) trying to eliminate regional inequalities, ii) inclusion of capital, iii) diminishing current deficit, iv) raising individuals’ life quality and v) increasing employment rate. As a political economy tool, government sponsored incentives play essential role to achieve the development objectives. This study primarily focuses to identify development and regional development policies, and analyzing development policies’ effect on regional development policies since modern Turkey's foundation. Than the new 2012 government sponsored incentive plan’s outcome, which based on number of investment certificates granted, investment volume and employment rate, will be analyzed. And finally regional invective programs effect on regional foreign trade will be evaluated after adopting East and South-Eastern Anatolia Incentive program which is named as 6th region in the national program.

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