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The factors that affect on foreign direct investments in Turkey (sectoral comparisons)

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  • Eren ÖĞRÜL

    (Abant Izzet Baysal University, Bolu, Turkey)

  • Mehmet ERYİĞİT

    (Abant Izzet Baysal University, Bolu, Turkey)

Abstract

This study focused on the concept of foreign direct investment (FDI) and examined economic, political, and investment climate-related factors influential on foreign direct investment decisions. To this end, what could be done to increase foreign direct investments on a sectorial basis was investigated through examining the factors influential on foreign direct investments in general and on a sectorial basis. In this context, analyses were made by using the annual data from the 1995 to 2012 period. The variables thought to be capable of influencing foreign direct investments in general and/or on a sectorial basis were classified, thereby creating 4 different regression models. Based on the regression analyses made, it can be said that not the same economic effects prevail in the sectors receiving foreign direct investment in Turkey, and political stability is influential on foreign direct investment, contrary to expectations.

Suggested Citation

  • Eren ÖĞRÜL & Mehmet ERYİĞİT, 2015. "The factors that affect on foreign direct investments in Turkey (sectoral comparisons)," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(604), A), pages 251-272, Autumn.
    • Handle: RePEc:agr:journl:v:xxii:y:2015:i:3(604):p:251-272
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    References listed on IDEAS

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