THE ROLE OF DEVELOPMENT BANKING IN PROMOTING INDUSTRIALIZATION IN TURKEY

Huseyin Ozturk, Derya Gultekin-Karakas () and Mehtap Hisarciklilar ()
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Derya Gultekin-Karakas: Faculty of Management, Istanbul Technical University
Mehtap Hisarciklilar: Faculty of Management, Istanbul Technical University

Region et Developpement, 2010, vol. 32, 153-178

Abstract: Development banks are influential institutions in financing development. Since their establishment back in the 19th century, development banks have played a leading role in supporting development in many countries. Despite the liberalization process of the 1980s and 1990s, development banks have continued to play an active role in financing development in the case of many countries. In the Turkish case, the performance of development banking in supporting development has varied over time. However, one feature has remained constant: development and investment credits did not contribute to the alleviation of regional imbalances even during the period of import substituting industrialization from the 1960s to 1979. Moreover, total fixed capital investments, which are the raison d’etre for development banking in Turkey, have been mainly financed by commercial banks. Given the severe recession in the global economy, the development banks in Turkey may play a leading role in financing industrial and social projects. Resume - Les Banques de developpement ont joue un role majeur dans le finan-cement du developpement dans certains pays depuis leur creation au 19eme siecle. Dans le cas de la Turquie, cet appui au developpement a varie dans le temps. Cependant, une caracteristique n’a pas change : les credits à l’inves-tissement ne contribuent pas à l’attenuation des desequilibres regionaux, meme pendant la periode d’industrialisation par substitution aux importations entre les annees 1960 et 1979. En outre, les investissements en capital fixe, qui sont pourtant la raison d’etre des banques de developpement en Turquie, ont ete principalement finances par les banques commerciales. Avec la grave recession de l’economie mondiale en 2009, les banques de developpement en Turquie pourraient jouer un role important dans le financement du secteur industriel et des projets sociaux.

Keywords: INSTITUTIONS AND GROWTH; DEVELOPMENT BANK; TURKEY; REGIONAL DEVELOPMENT (search for similar items in EconPapers)
JEL-codes: O19 O43 O5 O52 R11 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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