The effects of inward processing regime, a customs regime with economic impact, on Türkiye's economy after 2002

In this thesis, firstly, a general description of the current status and development of economically effective customs regimes and inward processing regime (IPR) is made. Then, in terms of export-led growth, European Union (EU) countries, which have gained an important place in the global economy, and the effects of an effective export incentive system by Turkey on the Turkish economy were analyzed. Access to the vast markets of EU countries and the effects of EU trade policies on Turkey's foreign trade volume have been emphasised. Moreover, the contribution of Turkey's export incentives to international competitiveness and their long-term effects on economic growth are also assessed. This analysis provides an important perspective for understanding the effectiveness of Turkey's export-led growth strategies. After these definitions and analyses in the introduction, the second chapter is completed by analyzing the effects of this regime on the Turkish economy and foreign trade. In the third and fourth chapters, the current cyclical impact of the IPR is focused on, on the other hand, the main objective of the study will be to analyze the effects of the regime on Turkey's foreign trade and economy with the help of various statistical data graphs, figures and tables. Giving the example of the Turkish economy, the effects of IPR on the Turkish economy have been determined by observing that it reduces the raw material input costs of industrialists and producers in Turkey. However, in addition to the advantageous effects of IPR, the disadvantageous effects of IPR on the economy have also been identified. Import dependency and avoidance of raw material production are some of them. In the conclusion and recommendations section of the study, it is suggested that policy makers should carry out various studies to ensure that the regime works in accordance with its purpose in order to maximise the positive effects of the Inward Processing Regime on Turkey's foreign trade and thus on the Turkish economy. In this context, it is necessary to make a detailed examination of the changes experienced, taking into account the numerical size of foreign trade with IPR, sectoral distribution and the fields of commercial activity in the recent period. In conclusion, considering that the Inward Processing Regime plays an important role in Turkey's foreign trade and contributes to economic growth, studies should be carried out continuously to increase the effectiveness of the regime and to update it. In this way, it will be possible to utilise Turkey's foreign trade potential at the maximum level and support its economic development. The re-evaluation and improvement of the Inward Processing Regime can increase the competitiveness of the national economy and ensure the sustainability of export-led growth. In this context, customs regimes need to be adapted and continuously revised in line with the modern economy. In addition, it is also important that customs policies are made flexible and supported with innovative solutions according to the dynamic structure of the business world and the economy. These approaches can help Turkey to maximise its economic growth potential by strengthening its position in international trade. Key words: Inward Processing Regime, Customs, Ekonomy, Foreign Trade,Turkish Economy, Export, Incentive, Customs Regime with Economic Effect