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Empirical Application of The Effectiveness of Investment Incentives in Türkiye From The Perspective of Investors

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  • Necati Alp Erilli

    (Sivas Cumhuriyet Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, Ekonometri Bölümü, Sivas, Türkiye)

  • Şerife Merve Koşaroğlu

    (Sivas Cumhuriyet Üniversitesi, Cumhuriyet Sosyal Bilimler Meslek Yüksekokulu, Finans-Bankacılık ve Sigortacılık Bölümü, Sivas, Türkiye)

  • İlkay Noyan Yalman

    (Sivas Cumhuriyet Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, Ekonometri Bölümü, Sivas, Türkiye)

  • Sinan Dündar

    (Sivas Cumhuriyet Üniversitesi, Mühendislik Fakültesi, Endüstri Mühendisliği, Sivas, Türkiye)

  • Selçuk Yasin Yıldız

    (Sivas Cumhuriyet Üniversitesi, Cumhuriyet Sosyal Bilimler Meslek Yüksekokulu, Büro Hizmetleri ve Sekreterlik Bölümü, Sivas, Türkiye)

Abstract

The effectiveness of investment incentives is expected to reduce the imbalance between regions while ensuring economic growth. The sustainability of investment incentives and their expected impact are related to the rational allocation of resources to be used in this field. Although the incentive system, which has been in place in Türkiye for many years, has been updated according to economic requirements and planning, the evaluation of incentives from the perspective of investors has been neglected. The opinions and experiences of investors, who are the most important stakeholders in incentives, on the content and implementation of incentives are important in terms of increasing efficiency. The purpose of this study is to evaluate incentive implementation systems from the perspective of investors to enhance the effectiveness of investment incentives. This study aims to develop policy recommendations in line with the answers given to the survey questions prepared to evaluate the views of investors on the implementation of incentives. According to the results, it was determined that investors could not fully utilise the investment incentive system effectively because of both the investors and the system implemented. As a result, it has been concluded that to increase the effectiveness of investment incentives, the general characteristics of the region, sector, and investor should be taken into account in incentive practises and the SEGE criteria should be revised.

Suggested Citation

  • Necati Alp Erilli & Şerife Merve Koşaroğlu & İlkay Noyan Yalman & Sinan Dündar & Selçuk Yasin Yıldız, 2024. "Empirical Application of The Effectiveness of Investment Incentives in Türkiye From The Perspective of Investors," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 11(2), pages 317-333, July.
    • Handle: RePEc:ist:iujepr:v:11:y:2024:i:2:p:317-333
    DOI: 10.26650/JEPR1466048
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    References listed on IDEAS

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    1. Gerhard Untiedt & Hans Joachim Schalk, 2000. "Regional investment incentives in Germany: Impacts on factor demand and growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(2), pages 173-195.
    2. Todd M. Gabe & David S. Kraybill, 2002. "The Effect of State Economic Development Incentives on Employment Growth of Establishments," Journal of Regional Science, Wiley Blackwell, vol. 42(4), pages 703-730.
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    More about this item

    Keywords

    Investment incentives; Incentive system; Economic efficiency; Regional development; Turkish economy JEL Classification : O40 ; E22 ; O50;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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