The effects of inward processing regime on Turkey's economy and a study on iron steel industry

The international commerce which has great importance on economic developments of countries economy has become situation that has been seen intense competitive environment with effect of rapid globalization. In this competitive environment, goverments grants various in cash or based on working incentives in sake of increasing firms' capacity of compete on international markets. In our country export-led foreign trade policies adopted after 1980, while it had been carried out import substution foreign trade policies prior to 1980. In this thesis, it will be studied that the effects of inward processing regime (IPR) systems and practices, which is the most important incentive methods in the foreign trade policies practices, on the iron-steel industry that is direct related with country economy and one of the most effected sector from world ecomomic conditions. The aims of this thesis are to reveal increasing export and goods variability of Turkish iron-steel indsutry via IPR systems and practices, to express whether or not used granted IPR incentives for its expected goal, to cary out what should be done regarding using more effective of IPR in terms of Turkish firms in order to compete on the global markets. On the other hand, the importances of this thesis are to express researchers who study on the IPR system and practices regarding firms in active on the iron-steel sector, to explain what should be done related with increasing, developing and competing of export dealing with firms which active in Turkish iron-steel sector and to reveal evidences regarding the meaningful results between Turkish iron-steel sector which practices IPR and other countries. At this thesis firstly literatüre study has been done and then questionaire has been set up on the employees who work for 31 iron-steel firms export procedures related iron-steel sector which are benefitted IPR system and practice in İstanbul, İskenderun, İzmir, Tekirdağ and Zonguldak. In this study, while preparing questionaire, customs regulations have been taken up reference and derived benefit from 2006/12 numbered IPR Regulation and PhD thesis (2007), which is subjected "The effects of IPR on the Export and An Evaluation on Ready-To Wear Sector", written by Dr. Coşkun ŞENOL. Additionally, while preparing questionaire, it has been taken opinion from Ministry of Commerce auditors, customs inspectors and Department of International Trade and Logistics academicians. The survey questions which have been prepared by researcher has been requested from respondents in order to reply. In terms of scaling of the survey questions, it has been benefitted from The Five-Point Likert Scale. The SPSS 22.0 (Statistical Program for Social Scientists) software has been used regarding research data analyzing. The data which are obtained from questionaire practices have been evaluated via Chi Squared Test, Mann-Whitney U Test, Kruskal Wallis Test. As a result, it has been determined that IPR systems and practices on the iron-steel plants provide considirable contributions in terms of export increasing and developing such as exemption of import duty and Value Added Tax (VAT), providing VAT postponement in domestic buyings, using Turkish Eximbank credit programs on financing export, supplying cheap raw and semi-raw materials. In addition to this, by means of IPR, it has been concluded that Turkish firms have gained international competitiveness, IPR systems and practices do not damage on the production balance and competition in domestic market, new regulations are needed in order to more efective IPR practices.