The importance of the Filyos Vadi Project in terms of regional development and a comparison with Mersin Free Zone

Free zones are special areas that contribute to the increase of national income, employment, investment and production and are important for economic development. These special areas, with the advantages they offer, can put countries in a superior position in foreign trade. The first applications of free zones, which date back to ancient times, were in the form of private settlements. In those days, kings or queens would set aside special areas for investors in the empire, exempting them from export and import taxes and restrictions that hindered economic development. The first important steps towards free zones were taken by Hong Kong and Singapore in the 18th century and spread to Southeast Asian countries in the 19th century. With the Great Depression of 1929, free zones, the first examples of which were seen in the United States, spread to all European countries in the following periods. The first free export production zones were established in Ireland in the 1950s. According to UNCTAD's World Investment Report 2019, the number of free zones in the world is gradually increasing, reaching 5,400 in 147 countries. Although free zone studies in Turkey began in the Ottoman period, efforts in this area did not yield successful results. The same efforts continued in the Republican era and gained momentum with the export-oriented industrialisation model implemented in the 1980s. The first free zone was established in Mersin in 1987. The number of free zones increased in the 1990s and today there are eighteen. Free zones should also be seen in the context of regional development. In this context, free zones promote the inflow of foreign capital and foreign exchange to the countries where they are located. They promote export-oriented industries by enabling technology transfer and make a significant contribution to the economy by giving domestic industry a competitive edge in the international market. In terms of their contribution to the country's economy, especially their contribution to regional development, the subject of the study was chosen as The Importance of Filyos Valley Project in terms of Regional Development and a Comparison with Mersin Free Zone. The Filyos Valley Project, whose foundations were laid during the reign of Abdulhamid II and which is the most important national investment project in the history of the Republic, is an investment basin in general. It includes the Filyos Port, the Filyos Industrial Zone, the Filyos Free Zone and the Free Zone Development Area. Mersin Free Zone is characterised by the fact that it was the first free zone to be established in Turkey and that it is a port city like Filyos Port. The aim of the study is to compare the two port cities in terms of their functions in the context of the subject of the study, to highlight their importance in terms of regional development and to contribute to the literature in this field. To this end, the historical comparative method has been chosen as the method of study. It is expected that the Filyos Valley Project will bring a solution to the migration problem in the region, provide employment opportunities for more than 40 thousand people in the region, and transform the region into an energy, technology and logistics base by creating positive externalities from these economic developments.