Investment Incentives and FDI in Turkey: The Incentives Package after the 2008 Global Crisis

摘要

The investments have very great importance in terms of increasing of countries GDP. Foreign investment, investible resources can be defined as moving to another country by persons and organizations. Foreign direct investments (FDI) outside of the portfolio investments, foreign investors, either alone or in partnership with local investors realized investments. Countries are trying to attract foreign investments by exemptions and incentives to foreign companies, as well as various tax exemptions and market priorities, infrastructure services, and even giving monopoly rights. Especially foreign investments can provide in overcoming crises to countries. The crisis that emerged in USA since last quarter of 2008 spread to Europe and developing countries. Turkey has also been influenced by this crisis as much as other developing countries. Despite intensive government interventions, a great number of countries could not hinder them from decreasing growth rate and increasing unemployment. Countries launched incentive package in order to alleviate impact of crisis and get rid of ravage effect of crisis. Investment incentives were very critical and deterministic during the crisis period. Turkey had launched comprehensive investment incentive system in 2009 by considering these progresses in other countries. In this paper, investment incentive system implemented in Turkey is analyzed during the global crisis and effect of this system on foreign investment decisions.