Financialization of state and household indebtedness: the case of Turkey

Sema, Gizem
The thesis analyzes the financialization in developing countries over the last decade by drawing on the case of Turkey. It addresses the question of how consumer credit has become a part of daily life of wage earners in the age of financialization in Turkey. It focuses on the nature and role of household indebtedness in contemporary capitalism and the current financial and economic crises in Turkey. The theoretical framework based on a critical political economy approach and elaborated macroeconomic, political, institutional and historical environment in which the capital accumulation has taken place. By considering the specific characteristics of Turkey as a developing country, liberalization and integration into the world economy shaped Turkey’s financial institutions and have an impact upon its financialization process. Overall findings of this study indicate that state was the driving force behind financialization in the late 1980s and 1990s and its role continues for in the 2000s. However, it should also be underlined that financialization in Turkey acquired a new characteristic in the post-2001 since with the impact of the deregulation of the financial sector, proliferation of new financial instruments and liberalization of international capital flows, the role of finance in economic and social life has not only increased but also deepened.  


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Citation Formats
G. Sema, “Financialization of state and household indebtedness: the case of Turkey,” M.S. - Master of Science, Middle East Technical University, 2017.