Within the Context of Changing Role of the State Assessment of Incentive Policies Applied After 1980 in Turkey

Fevzi Engin

Journal of Applied Finance & Banking, 2012, vol. 2, issue 6, 13

Abstract: Within economic policies tax incentive policies have always had a serious significance in establishing stability and encouraging investments. After 1980 in Turkey, together with the globalisation process experienced in the World, fundamental changes have been made in economic policy applications. From import substituting, inward oriented and somewhat intervening practices before 1980, an economic policy strategy has been transitioned to which makes an export-oriented industrialisation and growth model as well as free market relations dominant. In this study the objective is to discuss the question of “to what extent incentive policies applied after 1980 have realised targeted economic policies†and to make an assessment of it. In addition, by touching upon the role and function of incentive policies in economic policies, the situation after 1980 in Turkey will be determined insofar as statistical data permit. Another subject matter within the scope of this study is to assess a new draft incentive law which has not been put into effect yet but has been prepared by the Ministry of Finance, and to determine the effects of developments experienced in the World on incentive policies. As a conclusion, changes in the tax incentive understanding taking place after 1980 in Turkey is explored and suggestions are made for possible changes in the future.

Date: 2012
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