Effect of state support and incentives on sectoral effectiveness, incentive applications in Turkey during planned development period

In this study, the incentives given in the 1960-1980 planned development period in Turkey were examined. State support, analyzed in the context of the revolving development plans, economic developments during 1960-1980 period, State Planning Organization, Incentive policies in the world and Turkey, incentive applications has been shown to provide important contributions to the development of the private sector. In the empirical part of this thesis study; the effect of subsidies on sectoral value added was investigated by using an unbalanced panel data set for country groups ranging from 36 to 144 numbers. If the incentives given are effective, it is expected to have a positive impact on sectoral value added. Otherwise, the reverse effect on value added is foreseen. In addition to the subsidy variable, our analyzes included three control variables, which are determinants of sectoral value added, to see if they protect the validity of our findings. These variables are the series of Gross Fixed Capital Formation, Real Interest Rate and Human Capital Index. In Unit Fixed Impact Single and Multiple Regression Models, value added series belonging to 14 different sectors are used as dependent variable. As the main finding of the study; the subsidies which is a proxy for incentives in the model according to the estimation results; it has been determined in both single and multiple regression models that the value added created in an economy is positively affected in a statistically significant manner. The control variables received the expected signs and only the interest rate included in the model representing the uncertainty of the country from the three control variables became meaningless.