Investment Incentives in Türkiye: Macroeconomic Analysis with Geographically Weighted Regression

Serife Merve Kosaroglu (), Ilkay Noyan Yalman (), Sinan Dundar (), Selcuk Yasin Yildiz () and Necati Alp Erilli ()
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Serife Merve Kosaroglu: Sivas Cumhuriyet University, Cumhuriyet Social Sciences Vocational School, Department of Finance-Banking and Insurance
Ilkay Noyan Yalman: Sivas Cumhuriyet University, Faculty of Economics and Administrative Sciences, Department of Econometrics
Sinan Dundar: Sivas Cumhuriyet University, Faculty of Engineering, Department of Industrial Engineering
Selcuk Yasin Yildiz: Sivas Cumhuriyet University, Cumhuriyet Social Sciences Vocational School, Department of Office Services and Secretarial
Necati Alp Erilli: Sivas Cumhuriyet University, Faculty of Economics and Administrative Sciences, Department of Econometrics

World Journal of Applied Economics, 2024, vol. 10, issue 2, 137-152

Abstract: One of the most important objectives of investment incentive policies implemented in Türkiye is to reduce regional development level disparities. In this context, 81 provinces were classified into six regions, and region-specific investment incentives with different scopes and budgets have been implemented. The effectiveness and contributions of investment incentives to the region are essential in economies such as Türkiye, where regional imbalances are evident. In this study, investment incentives implemented in Türkiye are examined from a macroeconomic perspective to determine their economic effects using the geographical (spatial) analysis method. The results show that the relationship between investments, employment, the number of incentive applications, and exports within the scope of incentives and province-level national income is more substantial in particular provinces. Our analysis indicates that increasing the effectiveness of incentives requires developing institutions to continuously and dynamically evaluate and monitor the impacts of these policies.

Keywords: Investment Incentive System; Turkish economy; GWR method (search for similar items in EconPapers)
JEL-codes: C01 C20 O10 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ana:journl:v:10:y:2024:i:2:p:137-152

DOI: 10.22440/wjae.10.2.6

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