Factor Preventing Tradesmen From Investing In Eastern Anatolia: Low Density Of Population

Abstract

Research was conducted on the past investments and future plans of the tradesmen in the Çayırlı district of Erzincan. Interviews were made with 12 tradesmen working in different sectors. The main factor in the decisions of tradesmen to start and stop their investments is population mobility. Although businesses that sell necessities relatively manage to survive, businesses such as cafes, restaurants and internet cafes, especially in the entertainment sector, are highly sensitive to fluctuations in the population. However, since the population does not increase and on the contrary, migration continues, businesses do not think of investing regardless of the sector. Although the opening of the vocational school has energized the district, the businesses were closed due to Covid-19 and the students' decrease in their demands to the districts. The areas that tradesmen see as investable are sectors that are not based on population. According to the inferences obtained here, public policy can be in two directions. First, public administrative units and universities can be moved to these regions. Especially in terms of universities, reducing the quotas in Western Anatolia and increasing the quotas given to Eastern Anatolia can be considered. Secondly, production incentive policies can be planned to support the production of domestic entrepreneurs who will sell them outside the district. However, this support must also be covered by the purchase guarantee. Because a producer in Eastern Anatolia needs market information and distribution channels for sales outside of his region.