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State owned enterprises, entrepreneurship and local development: A case from Turkey


  • Çokgezen, Murat


This study has examined the results of SOE policy by comparing two provinces in Turkey, one that was a would-be beneficiary of this policy and the other not. Statistical data and anecdotal evidence from in-depth interviews show that the SOEs increased labor costs, discouraged private entrepreneurship and guided locals to political, rather than productive solutions to their economic problems; regional development in the province in which SOEs dominated the regional economy was hindered. These results are in line with the reported outcomes of SOE policy adopted by Italian governments in order to promote development in southern Italy.

Suggested Citation

  • Çokgezen, Murat, 2011. "State owned enterprises, entrepreneurship and local development: A case from Turkey," MPRA Paper 27676, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:27676

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    References listed on IDEAS

    1. M. Florio, 1995. "Large Firms, Entrepreneurship and Regional Policy: "Growth Poles" in the Mezzogiorno over Forty Years," Departmental Working Papers 1995-04, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    2. Albert Alesina & Stephan Danninger & Massimo Rostagno, 2001. "Redistribution Through Public Employment: The Case of Italy," IMF Staff Papers, Palgrave Macmillan, vol. 48(3), pages 1-2.
    3. Andrea Boltho & Wendy Carlin & Pasquale Scaramozzino, 1999. "Will East Germany become a new Mezzogiorno?," Chapters,in: Economic Growth and Change, chapter 13 Edward Elgar Publishing.
    4. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    5. Andre van Stel & Martin Carree & Roy Thurik, 2004. "The effect of entrepreneurship on national economic growth: an analysis using the GEM database," Papers on Entrepreneurship, Growth and Public Policy 2004-34, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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    More about this item


    state owned enterprises turkey regional development;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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