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Does Power of Political Economy and Regulation Make Istanbul a Financial Center? (Ekonomi Politik ve Düzenlemenin Gücü Istanbul’u Finans Merkezi Yapabilir Mi?)
[Does Power of Political Economy and Regulation Make Istanbul a Financial Center?]


  • Coskun, Yener


Turkey is well behind the many countries according to socio-economic development criteria. Activities aim to make Istanbul a financial center seem paradoxical due to less developed and risky characteristics of national economy and financial system. It seems that these activities have both economic and political rationales. Economic rationale of the Istanbul Financial Center (IFC) project suggests that Turkish economy has transformed to a safe harbor. Political rationale of this project may imply that evolving economy politics of post 9/11 environment may create economic advantages for Turkey. It has observed that the tool of regulation is of central role for the idea of the development of a financial center in Istanbul. In this paper, by using literature and data analysis, we examine the chance of the success of the regulatory/bureaucratic approach for IFC project. We conclude that IFC project has weak internal dynamics and it occurred due to both its political attractiveness and also cyclical local/global economic/political conditions. But, it is not realistic to expect strong positive outcomes from the IFC project, if the project would focus only regulatory/bureaucratic approach.

Suggested Citation

  • Coskun, Yener, 2011. "Does Power of Political Economy and Regulation Make Istanbul a Financial Center? (Ekonomi Politik ve Düzenlemenin Gücü Istanbul’u Finans Merkezi Yapabilir Mi?)
    [Does Power of Political Economy and
    ," MPRA Paper 36847, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:36847

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    References listed on IDEAS

    1. Peter Spufford, 2006. "From Antwerp and Amsterdam to London: The Decline of Financial Centres in Europe," De Economist, Springer, vol. 154(2), pages 143-175, June.
    2. C. Emre Alper, Ismail Saglam, 2001. "The Transmission of a Sudden Capital Outflow: Evidence from Turkey," Eastern European Economics, Taylor & Francis Journals, vol. 39(2), pages 29-48, March.
    3. Coskun, Yener, 2010. "An Analysis of the Strenghts and Weaknesses of the Turkish Real Estate Market," MPRA Paper 28361, University Library of Munich, Germany.
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    More about this item


    Istanbul; financial center; London; Z/Yen; governance; Turkey; 9/11;

    JEL classification:

    • B10 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - General
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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