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Privatization and regional distribution of manufacturing in Turkey

  • Fatma Dogruel

    (Marmara University)

  • Suut Dogruel

    (Marmara University)

The state owned enterprises were crucial in the early stage of industrial development in Turkey. They were producer of basic consumption goods and contributed the building the entrepreneurial understanding, and hence the development of the private sector. State owned enterprises have played key role in almost all sectors of the Turkish economy, including manufacturing sectors and various infrastructural facilities. After 1980, the radical transformation has occurred in Turkish economic policies: The reform process included not only financial liberalization and trade reforms, but also the privatization of the state owned enterprises. Initially, starting from the second half of 1980s, international organizations have advocated privatization as a “must” policy tool. The paper explores the effects of privatization on regional growth of Turkish manufacturing. The analyses are carried out at regional basis in order to detect to what extent the public sector is complement to or substitute of the private sector. The findings show that privatization has no perverse effects on the development of the manufacturing activities in the traditional and new industrial zones. However, its effects are in opposite directions in the poor regions.

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Paper provided by Turkish Economic Association in its series Working Papers with number 2011/4.

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Length: 27 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:tek:wpaper:2011/4
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  1. Sirin Saracoglu & Murat G. Kirdar, 2006. "Does Internal Migration Lead to Faster Regional Convergence in Turkey? an Empirical Investigation," ERSA conference papers ersa06p784, European Regional Science Association.
  2. Sergio Godoy & Joseph Stiglitz, 2006. "Growth, Initial Conditions, Law and Speed of Privatization in Transition Countries: 11 Years Later," NBER Working Papers 11992, National Bureau of Economic Research, Inc.
  3. Dogruel, Fatma & Dogruel, A. Suut, 2010. "The Deindustrialization of Istanbul," MPRA Paper 27070, University Library of Munich, Germany.
  4. John Bennett & Saul Estrin & James Maw & Giovanni Urga, . "Privatization Methods and Economic Growth," Economics and Finance Discussion Papers 03-24, Economics and Finance Section, School of Social Sciences, Brunel University.
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