The Political Economy of Government on Export Success in Turkey

Demirbaş D.

the Golden Ring Economic Forum (GREF), Lahore, Pakistan, 12 August 2021, vol.1, pp.1-15

  • Publication Type: Conference Paper / Full Text
  • Volume: 1
  • City: Lahore
  • Country: Pakistan
  • Page Numbers: pp.1-15
  • Istanbul University Affiliated: Yes


This article examines the differences between exporter and

nonexporter small and medium enterprises (SMEs) in Turkey to

understand the impact of government programs on their export

decisions. The empirical data are from a survey of 300 Turkish

SMEs (150 exporters and 150 nonexporters) in Turkey. As our

question is why some SMEs are exporting while others of a similar

size are not, although the government export promotion programs

are same for all SMEs, the dependent variable should be dichotomous,

and the applicable analytical model should come from the

binary-choice genre of models, namely. Results suggest that

government export-promoting programs, size of the firms, and

manufacturing status of the firms contribute positively to export

performance in SMEs, but barriers such as educational level of

managers, lack of financial resources, lack of language knowledge,

too many government regulations, and high taxes negatively

affect the export performance of Turkish SMEs.