Performance of export incentives in the light of strategic trade policy theories: Example of Turkey

Free competitive conditions are disrupted by some incentives or restrictions within the scope of foreign trade policies. Each country intervenes in the process for its own interests, as a result of which it can obtain some gains against the countries that do not react. Strategic trade policies suggest that firms should be supported in order to transfer excess profits generated in oligopolistic markets to the country at a higher level. The aim of this study is to explain how the export incentives applied in Turkey affected the global export market share by using the time series analysis in terms of the years 2006-2020. As a result of the designed model, it was found that export incentives affected the global export market share in a statistically significant and economically positive direction. The global export market share was realized below the country targets for 2019 included in the 2023 Export Strategy Document. This situation can be interpreted as the measures in the document have not been fully implemented and the amount of export incentives should be increased. A long-term effective solution for the benefit of the majority of countries will be in the form of taking reasonable measures to keep up with global competition in a free trade environment.