“Race to the bottom” can be defined as countries loosening, giving up or not trying to increase the standards to protect environment or workforce in order not to stay out of international competition. In this study, environmental race to the bottom discussed in a way that if Turkey creates competitiveness in polluting sectors in parallel with this definition. According to findings for 2019, Turkey has competitiveness among 60 per cent of the polluting sectors, when the number of the sectors has taken into consideration. The polluting sectors having large proportion among the competitive sectors, may indicate that Turkey joins the race to the bottom in international market.

Kalecki published his most important economic ideas, which contributed to the litera- ture and formed the core of the theory of effective demand, before Keynes’ work on this subject, in Polish between 1933 and 1935. The Marxist approach formed the theoretical framework for his empirical works. Therefore, Kalecki, who is considered the pioneer of macroeconomics together with Keynes, has put the problem of income distribution at the center of his theory. The aim of this study is to examine Kalecki’s distribution theory. The basic proposition of Kalecki, who examines the problem of distribution with effective de- mand: The share of workers in total income depends on the power of firms to add profit margins to their costs, that is, the degree of monopoly.

While countries in the past, applied incentives to support production, employment and export, today they develop and implement incentive policies that support specialized fields such as R&D, design, branding. Turkey has also developed and implemented various incentives in this direction. One of them is the R&D Center Support, which encourages the development of new technologies and the other is the TURQUALITY Support Program, which encourages the branding of companies in the international market. While it is aimed to increase exports within the scope of the these two supports, product design and development activities are indirectly encouraged. In this respect, in this study, the effects of these two incentives, which provide indirect support to product design and development activities as well as directly supporting R&D and branding, on the export and innovation capacity of the manufacturing industry in Turkey were investigated.

The study tests the validity of the monetary model with flexible priced assumption from exchange rate determination models for the period 2005:09-2021:05 in Turkey. The flexib- le-priced monetarist model developed by MacDonald and Taylor (1994) was tested with the ARDL cointegration method using Turkish and US data. According to the test results, it is effective with a high coefficient as the determinant of the value of the Turkish Lira against the US Dollar in the short-term; It was found that foreign money supply, domestic money supply and domestic bond interest rate lagged values were the determinants of the exchange rate. It was concluded that in the long-term domestic money supply, domestic interest rate and foreign income exchange rate are determinants. Although there are some differences in terms of short-term and long-term, it has been observed that domestic mo- ney supply and domestic bond interest rate are determinants of exchange rate in Turkey.