The effects of the inward processing regime: Carpet sector analysis

The common goals of all countries in the world are to increase their incomes by gaining more shares in world markets. For this purpose, practices and policies for increasing export are important for countries today.Turkey After 1980 "Export-Oriented Growth Model" adopted by increasing exports towards exports has started to implement incentive arrangements. The "state aid" system which targeted Exports increase, has entered the process of harmonization with international standards after the signing of the EU 1/95 the Association Council between Turkey. The Inward Processing Regime (D.İ.R.), which was put into practice in 1996, still maintains its importance in terms of analysis of economic and foreign trade policies with its important share in exports.The purpose of this study, first mentioning the world carpet industry and Turkey's competitive position in this sector, in terms of maintaining the effect of the regime in the competitiveness of the export of Turkish carpets sector. The Inward Processing Rejimi's effectiveness ın the 5727 and 570242 product groups, which are the sub-chapters of 57th. has been demonstrated by using the usage rates of The Inward Processing rejimi in foreign trade. In order to understand the import data and foreign exchange usage rates within the scope of the regime, the data of firms operating in NACE code 13.93.11.00.04-Machine carpets (knotted ones) in Gaziantep and having 250 and 250+ employees are examined. The use of the Processing Regime increased with each passing day and reached about 80%. In addition to the increase in exports realized within the scope of the regime, it was understood that foreign exchange utilization rates were realized as low as 36% and foreign currency was provided to the country.