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The Role Of Development Banking In Promoting Industrialization In Turkey


  • Hüseyin ÖZTÜRK

    () (International Capital Market Department, Republic of Turkey)


    () (Faculty of Management, Istanbul Technical University)


    () (Faculty of Management, Istanbul Technical University)


Development banks are influential institutions in financing development. Since their establishment back in the 19th century, development banks have played a leading role in supporting development in many countries. Despite the liberalization process of the 1980s and 1990s, development banks have continued to play an active role in financing development in the case of many countries. In the Turkish case, the performance of development banking in supporting development has varied over time. However, one feature has remained constant: development and investment credits did not contribute to the alleviation of regional imbalances even during the period of import substituting industrialization from the 1960s to 1979. Moreover, total fixed capital investments, which are the raison d’être for development banking in Turkey, have been mainly financed by commercial banks. Given the severe recession in the global economy, the development banks in Turkey may play a leading role in financing industrial and social projects. Résumé - Les Banques de développement ont joué un rôle majeur dans le finan-cement du développement dans certains pays depuis leur création au 19ème siècle. Dans le cas de la Turquie, cet appui au développement a varié dans le temps. Cependant, une caractéristique n’a pas changé : les crédits à l’inves-tissement ne contribuent pas à l’atténuation des déséquilibres régionaux, même pendant la période d’industrialisation par substitution aux importations entre les années 1960 et 1979. En outre, les investissements en capital fixe, qui sont pourtant la raison d’être des banques de développement en Turquie, ont été principalement financés par les banques commerciales. Avec la grave récession de l’économie mondiale en 2009, les banques de développement en Turquie pourraient jouer un rôle important dans le financement du secteur industriel et des projets sociaux.

Suggested Citation

  • Hüseyin ÖZTÜRK & Derya GULTEKIN-KARAKAS & Mehtap HISARCIKLILAR, 2010. "The Role Of Development Banking In Promoting Industrialization In Turkey," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 32, pages 153-178.
  • Handle: RePEc:tou:journl:v:32:y:2010:p:153-178

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    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes


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