Comparative analysis of export incentive policies pursued in Turkey and selected CIS countries


Thesis Type: Postgraduate

Institution Of The Thesis: Bursa Uludağ University, Sosyal Bilimler Enstitüsü, Turkey

Approval Date: 2019

Thesis Language: Turkish

Student: Orkhan Samadzade

Supervisor: UFUK SELEN

Abstract:

The state was given authority to intervene in the allocation of resources to increase the level of social welfare. Based on this principle, states attempt to fulfil resource allocation through incentive policies. In today's world of economic globalisation, the incentive policy pursued in one country can determine the efficiency level of allocation and use of resources in other countries. Therefore, all incentive policies should be planned and implemented in line to bring markets closer to the full conditions of competitive markets. The study aims to examine the export incentive systems and policies of CIS countries. To this end, the export incentive policies of CIS countries and their impact on trade relations with Turkey were evaluated. The incentive and foreign trade policies of four CIS member countries were evaluated in the study. The economic size was the fundamental determinant criteria in the selection of these countries. The study identified that the export potential of CIS countries is very low, and they need to establish a production structure that would meet the domestic demand. The GDP level of CIS countries, which are mostly raw material exporters, is sensitive to the world market prices of the products they export. This feature makes the economies of CIS countries unstable. The export incentive system aimed at diversifying export products is being established to minimise this instability. The trade volume in intra-CIS trade is narrow since member states have an economic structure far from complementarily. Therefore, the foreign trade volume of the commonwealth is higher. It is possible to strengthen the trade relations of complementarily between Turkey and the CIS countries. In particular, Turkey can increase trade relations with CIS countries by focusing on exports of investment goods, since the CIS countries lack resources to meet the pressing social needs and knowledge to ensure effective use of these resources. In this sense, it can be said that Turkey should actively use incentive policies that can increase the export potential of machinery and machine technologies to CIS countries.