Analysis of investment subsidies in Turkey in terms of regional development

Last years, there is a rapid change in the world economy. Globalization has become widespread after 1980s, but nowadays the U.S.A. has an economic crisis which is triggered with collapse of the mortgage system and that has affected whole world. Accordingly, it puts government intervention down on the agenda once more.In general, governments intervene economies through subsidy and deterrence in free market economies. In that context, recently subsidies have become more important as a protection and guidance tools of the economies. Thereby, by the means of these policies, refreshment of the economy and regional development are aimed.In this study, firstly subsidy and regional development concepts are studied, then inter-regional differences in terms of development in Turkey and their relationship with regional distribution of subsidies are examined. Lastly, in the analysis 1, the relation of regional distribution subsidy figures and GDP figures of Turkey are analysed between 1980-2006 years. In this analyse, subsidies of Aegean, Black Sea, Central Anatolia and Marmara Regions, which are on the western side of Turkey and Turkey?s more developed relative to other regions, are meaningful with the GDP figures. On the other hand, in the analysis 2, the relation of regional distribution subsidy figures and employment figures of Turkey are analysed between 1988-2006 years. In this analyse, subsidies of Marmara ad Aegean Regions, which are the most developed parts of Turkey, and East and South East Anatolia Regions, which are the less developed parts of Turkey and have the lowest subsidies, are not meaningful with the employment data. On the other, subsidy figures of Mediterranean, Black Sea and Central Anatolia are meaningful.