China’s Capital Export Within the through of Belt and Road Initiative: A Model Application for Turkey

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 2

Year of Publication : 2020

Authors : Mehmet Ali Koçakoğlu , Mehmet Reşit Sevinç , Mehmet Cançelik

10.14445/23939125/IJEMS-V7I2P103

How to Cite?

Mehmet Ali Koçakoğlu , Mehmet Reşit Sevinç , Mehmet Cançelik, "China’s Capital Export Within the through of Belt and Road Initiative: A Model Application for Turkey," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 2, pp. 12-17, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I2P103

Abstract:

In today’s world, where the global balance has shifted from Atlantic to Pacific, China is the most important and leading country of this change. According to some economists, Belt and Road Initiative is the most important project in China in carrying out this change. Increasing worker wages, Made In China 2025 concept, and high savings rates of Chinese people have to lead to a great capital surplus. Belt and Road initiative can be defined as China’s effort to export this capital surplus. One of the main aims of BRI is sharing the capital surplus with the world in the manner of infrastructure investments and through the export of other labor-intensive industries to developing countries include Turkey, within a mutual benefit basis. In this study, the reasons underlying China’s capital exports will be brought to light via a LED and energy-saving bulb production enterprise founded in Turkey with Chinese capital while explaining Turkey’s investment environment, advantages provided to foreign investors in Turkey through the foundation stages of this enterprise. Also, the enterprise utilized the Turkish Investment Incentive System. Enterprise was founded in Şanlıurfa province and has utilized Region 6 incentives. Additionally, problems that occurred during the foundation process and their solution methods will be emphasized.

Keywords:

Capital Export, Foreign Capital, China, Belt and Road, International Trade

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