THE EFFECT OF INVESTMENT INCENTIVES ON BUSINESS ACTIVITIES IN TRA2 REGION

Abstract

Author(s): Adem DURSUN Melik YOLC?

State incentives have a great importance in state policies that implemented for progress and development of countries and for the fair distribution of public resources. However, in order to ensure more efficient and effective use of incentives, the needs of enterprises, sectors and regions that benefit from incentives should be determined accurately and their satisfaction levels should be evaluated. In this study, importance level of regional problems for sectors in TRA2 region which consists the provinces in the Eastern Anatolia Region (A?r?, Kars, I?d?r and Ardahan) have been examined. The regional problems affecting sectors are; the distance of the region to raw materials, problems arising from infrastructure, distance to the market, transportation problems, lack of qualified personnel in the region and lack of market gap in the sectors. It has been tried to determine whether the incentives affect the negative conditions in the region in terms of increasing the production and employment in the region and in making future investment decisions. In the study, it have been examined the establishment purposes, establishment locations and the problems of regional enterprises that are benefitting from incentives.

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