THE EFFECT OF INVESTMENT INCENTIVES ON BUSINESS EXPORTING ACTIVITIES IN TRA2 REGION

Abstract

In Turkey, as in the world, investment incentives are used by the countries to reach the predetermined economic targets, to eliminate the developmental difference between the regions and to provide development of certain sectors by directing the investments to certain sectors and regions. The Eastern Anatolia Region and in particular the TRA2 region is a region where the development gap between regions is very high. The government aims to ensure the socio-economic development of the TRA2 region through investment incentives. One way of achieving the economic development of the region is to improve the export potential of enterprises through the incentives provided to the region. In this study, affecting factors of the enterprises’ insufficient export rate in TRA2 region, which consists of the provinces Ağrı, Kars, Iğdır and Ardahan in the Eastern Anatolia Region, were examined regarding their importance level. These affecting factors are: Lack of capacity, lack of sufficient information about foreign markets, domestic market saturation, insufficient resources (material, equipment, technology, capital), transportation problems, lack of market gap in the domestic sector.