The concept of duty losses and investigating and analizing the operations which cause duty losses after 1980 in Turkey

257 SUMMARY A social state leads various kinds of activities according to some economic and social purposes and undertakes economic and social tasks in addition to the traditional tasks of the state such as justice, defence, etc. Therefore, a social state necessitates interventions in economy in order to reach its economic and social goals. Economic interventions of the social state can take different forms. One of them is to take part in economic life as public enterprises which are producers of goods and services. Public enterprises are owned and/or governed by the state and intend not only to produce goods and services for the market, but also to carry out social benefits. One of the activities of the public enterprises in creating social benefits is duty losses. Duty losses are constituted by the interventions of public authority in the prices of the goods and services which are produced by the public enterprises. Furthermore, duty losses occur, as the public enterprises are charged by the public authority with subsidizing various institutions and sectors. Duty losses are brought about by determining the prices of the goods and services produced by the public enterprises below their cost of production or market prices. Therefore, these activities support consumers of these goods and services and are also useful tools in order to constitute social justice. However, determining the prices below the cost of production or market prices is also subsidizing the producers who are using the inputs which are produced by the258 public enterprises. The tasks given to the public enterprises are of great importance for development goals. The subject of the thesis is defining the duty losses and examining their effects and results. The effects of the duty losses on the economy are also examined with regard to Turkey. Turkey is a social state and a developing country. Therefore, the duty losses have often been used as a tool of economic policy. However, in recent years because of improper applications the duty losses expended too much and can not be afforded.