Comparative analyses of the impact to business profitability and productivity of the incentives provided to foreign capital enterprises in the Republic of Turkey and Russian Federation

Today, every society is involved within the activities to strengthening its own economy. Many factors that cause increases and decreases in the capital stocks of countries are causing crises in the World and this situation causes more important to the countries affected by this crisis the importance of the task to prepare appropriate investment environment.The Investment Incentive Systems included within these preparatory activities vary according to the current economic structure and policy of each country. Enterprisesaiming direct foreign investment can be affected from the effort to make attractive the environment of the economy of the destination of the capital when choosing the location of the business. The aim of this study is to determine the level of the effect to the year-end net profit and productivity of the direct investment incentives applied by the Republic of Turkey and the Russian Federation for the foreign capital small and medium sized enterprises and to determine the level of positive and negative impact on decision making and target country selection. In this study, examples related to the specific characteristics of the application are given.