Export-oriented incentives policies promoting on regional developmental effects: Economic impact of customs regimes and the case of inward processing regime

In this study, firstly, some information about the course of trade in Turkey and export incentives were mentioned in the tools necessary for businesses to keep pace with increasing competition in international markets. Focused on the Inward Processing Regime(IPR) which one of the most critical tool for improving the incentives, under the based on export-oriented growth policies, after conceptual clarification, the functioning of the regime were mentioned. Subsequently, exports and imports of statistical information on the relationship has been demonstrated. Finally, IPR applications how it affects İzmir's regional development, foreign direct ınvestment(FDI) of İzmir province for exports in the amount of regional trade still does positive or negative effects, İzmir's foreign trade issues which have a comparative advantage in which goods and regional trade of application IPR in sectors where comparative advantage and creating two separate equations for regional trade and regional development questions so that's affecting positive or negative under Processing Regime applications included in sectors where comparative advantage, Ordinary Least Squares (OLS) method of estimation and Izmir province, using data for the period 2002-2014, in cross-section and time was examined by panel data analysis considers two different dimensions. The findings of the time series and panel data estimates showed similarities with the estimation results, regional foreign trade of İzmir province, although it does not have a comparative advantage, production of goods including rubber and plastic and rubber products manufactured so resources use ineffective; Having a comparative advantage in terms of its contribution to regional development more effective than the use of resources at this stage of natural or cultured pearls, precious and semi-precious stones, precious metals, precious metals coating metals and articles thereof; imitation jewelery, If the production of kind of coins goods had manufactured, due to regional developments IPR implementation of regional exports would have shown that further increases.