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the Basic Determinants of Foreign Direct Investment Inflows in Turkey (1988-2012)

Author

Listed:
  • Selçuk BALI
  • Gülhaným KAYATAÞ
  • Mete GÜLER

    (Giresun Üniversitesi
    Author-Workplace-Name: T.C. Merkez Bankasý
    Hazine Müsteþarlýðý, Sigorta Denetleme Kurumu,)

Abstract

Foreign direct investment (FDI) -which is the investment of foreign assets into domestic structures, equipment, and organization- is a type of durable investment unlike foreign investment into the stock markets that leaves suddenly when the economy faces any challenge. FDI is also considered to be a significant source of economic development by increasing employment, productivity, and constituting a bridge for skill and technology transfers. Developing countries differ from each other in benefiting from and attracting FDI. Despite its potential, Turkey is not one of them that crucially succeed in inflows of FDI. The objective of this study is to figure out the determinants of foreign direct investment in Turkey. In order to undertake it, we performed an econometric model based in time series data analysis for the period of 1988-2012.

Suggested Citation

  • Selçuk BALI & Gülhaným KAYATAÞ & Mete GÜLER, 2016. "the Basic Determinants of Foreign Direct Investment Inflows in Turkey (1988-2012)," Eurasian Eononometrics, Statistics and Emprical Economics Journal, Eurasian Academy Of Sciences, vol. 3(3), pages 1-12, January.
    • Handle: RePEc:eas:econst:v:3:y:2016:i:3:p:1-12
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    References listed on IDEAS

    as
    1. Bellak, Christian & Leibrecht, Markus & Riedl, Aleksandra, 2008. "Labour costs and FDI flows into Central and Eastern European Countries: A survey of the literature and empirical evidence," Structural Change and Economic Dynamics, Elsevier, vol. 19(1), pages 17-37, March.
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    More about this item

    Keywords

    Foreign direct investment; Real exchange rate; real interest rate; budget deficit;
    All these keywords.

    JEL classification:

    • E49 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Other
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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