Economic reforms in Turkey in the late 1900s had a significant impact on the country's economy, and multiple factors contributed to these improvements.
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Easier Business Formation: By making it easier for individuals to start new businesses and form private companies, Turkey fostered entrepreneurship and innovation. This led to increased competition, job creation, and diversification of the economy, which helped to reduce reliance on a few key industries.
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Government Investment in Projects: The Turkish government invested in infrastructure and various government projects, which stimulated economic activity. These investments improved transportation networks, energy supply, and industrial capacity, which in turn attracted foreign and domestic investments, boosted productivity, and enhanced economic growth.
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Trade Expansion Through EU Relations: While Turkey has not yet become a member of the European Union, its efforts to align its economic policies with EU standards and its commitment to forming a customs union with the EU in 1995 significantly expanded trade opportunities. This opened Turkish markets to European businesses and allowed local products greater access to European markets, thus enhancing exports and increasing foreign direct investment.
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Oil Production Expansion: Turkey's expansion of oil production and energy exploration helped bolster the industrial sector. The energy sector is crucial for economic growth as it supports various industries, reduces dependency on foreign energy, and increases local revenue through the sale of oil products.
Overall, these reforms collectively contributed to higher economic growth rates, increased foreign investment, improved productivity, and an overall more dynamic economic environment in Turkey during the latter part of the 20th century.