The Contribution of a State-Owned Enterprise to Regional, Industrial and Agricultural Production in Turkey: An Example of Ülfet Stock Company of Food and Soap Industry

Abstract

In the mixed economy which private and public enterprises are active in economic life, have their primary goal which is to maximize social prosperity. Public enterprises in Turkey were used to function as a means of economic improvement in parallel with the role of government in the 20th century. Public enterprises out of the aimed social prosperity, they have certain political aims of accomplishing resource allocation, fair income distribution and sustainable growth. These lead to some problems of public enterprises which have strengthened the privatization arguments especially through the end of 20th century. The aim of this study has to investigated (stay away from the controversial issue of privatization and the focus on) the activities of a public enterprise and its contribution to local and national economy. So we will focus on Ülfet Stock Company of Food and Soap Industry which was established in Gaziantep, in 1955 to produce olive oil, soap and glycerin and privatized in 2001. The establishing a public enterprise in this region has to increases a culture of industrialization and regional, agricultural production as well as added value. The result of this study has significant implications for public enterprise. Local governments and policy makers in their search of strategies for improving the roles of public and private enterprises in economy.