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Industrial Policy in the Middle East and North AfricaRethinking the Role of the State$
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Ahmed Galal

Print publication date: 2008

Print ISBN-13: 9789774160509

Published to Cairo Scholarship Online: September 2011

DOI: 10.5743/cairo/9789774160509.001.0001

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Incentives or Compensation? Government Support for Private Investments in Turkey

Incentives or Compensation? Government Support for Private Investments in Turkey

Chapter:
(p.35) Chapter 3 Incentives or Compensation? Government Support for Private Investments in Turkey
Source:
Industrial Policy in the Middle East and North Africa
Author(s):

Ahmed Galal

Publisher:
American University in Cairo Press
DOI:10.5743/cairo/9789774160509.003.0003

The history of government support to private investment in Turkey was not a new phenomenon. The adoption of the idea of the development planning in the early 1960s systematized economic policymaking in Turkey. Plans were only indicative for the private sector and the desired outcomes could only be achieved if private decision makers could be encouraged to take actions that supported the objectives of the plan. The situation improved as a result of a drastic shift in economic policies, from inward-looking industrialization to export-oriented growth in the early 1980s. Turkey's reform strategy was based on the classical sequencing approach, and in 1990 it liberalized the capital account of its balance of payments after “completing” reforms in the areas of finance and trade.

Keywords:   adoption, Turkey, industrialization, finance, trade

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