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The Macroeconomic Determinants of Foreign Direct Investment in the Turkish Economy

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  • Talat Ulussever

    (College of Industrial Management, KFUPM, Dhahran, KSA)

Abstract

The amount of foreign direct investment (FDI) in the Turkish economy increased considerably over two decades and reached a historically highest level in the year 2006. With increasing FDI inflows and their effects on the Turkish economy, it has become critical to determine the factors that affect those inflows. In this study, we construct a single regression model and use data from 1960 to 2004 to estimate the determinants of FDI inflows into the Turkish economy. The findings of this study are consistent with the literature and show that the statistically significant determinants of FDI inflows into the Turkish economy are openness, growth rate of the economy, foreign capital stock, infrastructure investment, and economic instability.

Suggested Citation

  • Talat Ulussever, 2008. "The Macroeconomic Determinants of Foreign Direct Investment in the Turkish Economy," Journal of Social and Economic Development, Institute for Social and Economic Change, Bangalore, vol. 10(1), pages 50-67, January-J.
    • Handle: RePEc:sch:journl:v:10:y:2008:i:1:p:50-67
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