The purpose of the paper is to study how globalization has affected the trade regime, industrial and labor market policies in Turkey. The paper concentrates on three aspects related to globalization: changes in trade regime, changes in industrial policies and issues related to labor markets. The paper shows how Turkey has liberalized its trade regime. Regarding industrial policy it is noted that considerable progress has been made in the fields of export and investment incentives. The present export incentive scheme is compatible with the TWO rules. But Turkey still has to align its investment incentive schemes and state aid policies to those of EU. Turkey has enacted its Competition Law in 1994. With the recently appointed Competition Board Turkey is ready to implement the competition policies. The most difficult aspect of globalization is related to labor market policies. The current system of formal and informal labor markets does not seem to be sustainable in the long run. With increasing globalization Turkey is expected to change considerably the current system of institutions, regulations and legislation of the Turkish labor market.
