An Analysis about Determining The Regional Distribution Of Investment Incentives: Turkey Case

In literature, the “incentive” concept includes the concepts such as encouragement, subvention, supporting and governmental aids, or is considered to be same with these concepts. Besides closing the gap between the countries and developed countries or developed countries’ effort for sustaining their leadership in strategic domains, the incentives are also applied in order to decrease the developmental differences between the regions or cities. The presence of the investment incentives in Turkey in order to eliminate the developmental differences between the regions has become more attention-grabbing especially after the implementation of incentive packages after the year 2000. Within this context, what the socioeconomic and political determinants of the incentives given to 26 regions of Turkey grouped according to nomenclature d unités territoriales statistiques (NUTS) and being within the scope of Level II are has been investigated for the period of 2004-2012. According to the analysis results, it has been observed that the degree of benefitting from investment incentives in Turkey exhibited parallelism with developmental status of the regions, and this situation indicated that the incentive policies implemented in order to eliminate the regional imbalances deviated from the desired objectives.