Varieties of Capitalism in Developing Economies: The Case of Turkey as a Hierarchical Market Economy

There has been much criticism of the literature related to the main types of varieties of capitalism. These criticisms have caused factors such as state intervention and business-state relation to be taken into account when analyzing the literature. In this context, in addition to Liberal and Coordinated Market Economies, there has also been discussion of Dependent, Mixed, and Hierarchical Market Economies. The aim of this article was to develop the discussions on the varieties of capitalism and to determine the place of Turkey, the position of which has been defined as uncertain in the varieties of capitalism classification. The results obtained from this analysis show that Turkey has the characteristics of a Hierarchical Market Economy. It is possible to observe the characteristics of Hierarchical Market Economy in family businesses, industrial relations, the role of the state, education and the impact of multinational companies in Turkey.