Investment incentives in Turkey

Since the mid-1960s the Turkish government has promoted investment by providing various incentives. Over the years there have been frequent changes in the type, level and coverage of the incentives provided to various sectors and subsectors. These incentives have sought to orient resources towards favoured industrial sectors during the period of import substitution and government-led industrialisation, encourage private investment as public investment gradually contracted, reorient private investment towards favoured sectors and away from speculative real estate, and provide subsidies of various kinds to a variety of socioeconomic causes, including regional development. Section 6.1 describes the investment incentive system in Turkey. Assessment of the incentive system is provided in Section 6.2 and conclusions follow in Section 6.3.