The effect of regional development policies in Turkey on regional and personal income distribution: The case of development agencies

Many institutions and organizations that bring all the countries that eliminate national borders together in terms of economic culture and technology, remove barriers to trade such as trade quotas, customs duties, open capital flows, spread worker goods and production factors to international fields, change and transform national economies. While the phenomenon of globalization, which is a supported multidimensional concept, continues its discussions, it also places importance on local and regional development with Development Agencies, Incentive System and Regional Development Administrations by determining development policies locally. Turkey economically, the impact of many factors, geographical huge regional disparities have occurred. Turkey is developing rapidly. For this reason, regional policies become important in order to eliminate the development differences between regions. The distortion of the personal income distribution of our country, which tries to reduce the inequality between the regions through regional development policies, has increased significantly. 20% of the richest population in Turkey is to achieve 7.7 times more income than the poorest 20% of the population. Within the scope of the study, attention was drawn to the regional policies of Turkey in detail and in the study, Regional Development Administrations, Development Agencies and the incentive system, and in this context, the establishment and objectives of the Regional Development Administrations and Development Agencies, their legal status, financial structures, income and expenditures, and activities and support was examined. In addition, the incentive system, its structure, scope, purpose and its effect on income inequality have been analyzed through graphics and econometrically. In this context, data from development agencies, regional administrations and other authorized institutions were compiled and their effects on the GINI coefficient and their relationship were determined econometrically by panel data analysis method. It can be said that Development Agencies, Regional development administrations and the incentive system are effective at closing the income gap between regions, but at the point of reducing personal income inequality, it was concluded that development agencies and regional development administrations increase personal income inequality together with public expenditures, while incentive system reduces income inequality.