Development of the financial liberalization period and investment climate in Turkey

Financial liberalization generally involves the liberalization of capital flows, financial services and market regulations. In Turkey, this process started in the early 1980s. In every period, Turkey's investment climate has been affected by both internal and external factors. Factors such as economic policies, global economic conditions, political stability and legal infrastructure have come to the fore as factors that directly affect investment decisions. Recently, it has been observed that investments in areas such as technology and renewable energy have increased. However, the Turkish economy has also encountered difficulties from time to time, such as political and economic uncertainties, exchange rate fluctuations and high inflation. These factors play an important role in shaping the investment climate. The aim of this study is to examine in depth the investment environment in Turkey from the beginning of the financial liberalization process to today and to analyze in detail the main factors that are effective in this process. The objectives of this study are to understand Turkey's development in the field of investment by examining the impact of financial liberalization on the economic environment and to identify critical elements that will affect investment strategies for the future. Traditionally, Turkey's methods of coping with the economic difficulties it is experiencing include reducing inflation and maintaining cost discipline. However, sensitive situations arising from speculative financial movements in the private sector are often ignored in these cases. The state sector has concentrated on debt payments, putting social responsibilities on the backburner. The economic increase and decrease in interest rates after 2001 were mainly aimed at repayment of debts.