State in Economics; competition policies and regulations; a case study on Turkey

State has taken important roles in the economy since 16th and 17th centuries which has witnessed to mercantilist system and the birth of the nation-state. The functions of the state in the economy have changed according to the economic and social necessities of the time. This continual change is also valid for the 21th century and therefore the relation of the state and the economy has gained a new structure. The rapid development and diffusion of the communication technologies has led to "globalization" and "New Economy" facts. The vital mission of state and govenments in those developments is to regulate markets for the purpose of improving infrastructure and generating competitive environment in order to gain competitiveness power in the international level. But there is no consensus among economists about the roles of the state as a regulator and therefore a great deal of arguments about regulation theories have been existed in the economic literature. The purpose of this study is three folds: i) to emphasize the changes in the 21th century's economy, ii) to examine regulation theories in the literature and the market structure approaches and country examples and applications relating to the competition policies in order to determine state structure and its tasks accomodating to those developments and iii) From this point of view to make a leading positive contribution to increase competition power of the Turkish manufacturing industry in the international level.m Key Words: Nation-State, New Economy, Competition Policies, Regulation Theories, Turkish Competition Authority