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Spoilt for Choice: Explaining the location choice of Turkish Transnationals


  • Kayam, Saime S.
  • Hisarcıklılar, Mehtap
  • Kayalıca, Özgür


The investments of Turkish entrepreneurs to other countries increased in the 1990s. This paper explores Turkish FDI abroad focusing on the factors influencing the FDI decision and location choice, using micro data collected from investor firms. A micro level data set for the Turkish FDI abroad is constructed using the information gathered through questionnaires conducted at some selected firms, which have engaged in FDI abroad. The data is explored using statistical and econometric techniques by grouping the countries based on their geographical location. Among the factors that determine the location choice of investors access to consumers and suppliers, market penetration; the presence of Turkish firms and Turkish population, and similarity to Turkey; trade opportunities and preferential trade agreements; together with labour costs and availability of skilled workers affect the location choice of Turkish transnationals. Key words: outward foreign direct investment, location choice, Turkey

Suggested Citation

  • Kayam, Saime S. & Hisarcıklılar, Mehtap & Kayalıca, Özgür, 2011. "Spoilt for Choice: Explaining the location choice of Turkish Transnationals," MPRA Paper 39150, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:39150

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    References listed on IDEAS

    1. Lecraw, Donald J, 1977. "Direct Investment by Firms from Less Developed Countries," Oxford Economic Papers, Oxford University Press, vol. 29(3), pages 442-457, November.
    2. Proudman, James & Redding, Stephen, 2000. "Evolving Patterns of International Trade," Review of International Economics, Wiley Blackwell, vol. 8(3), pages 373-396, August.
    3. Michael A Witt & Arie Y Lewin, 2007. "Outward foreign direct investment as escape response to home country institutional constraints," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 579-594, July.
    4. Urmas Varblane & Tonu Roolaht & Ele Reiljan & Rein Juriado, 2001. "Estonian Outward Foreign Direct Investments," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 9, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    5. Andreff, Wladimir, 2002. "The new multinational corporations from transition countries," Economic Systems, Elsevier, vol. 26(4), pages 371-379, December.
    6. Saime Suna KAYAM & Mehtap HİSARCIKLILAR, 2009. "Türkiye’den çıkan doğrudan yatırımları belirleyen etmenler, 1992-2005," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 24(280), pages 47-70.
    7. Dunning, John H., 2000. "The eclectic paradigm as an envelope for economic and business theories of MNE activity," International Business Review, Elsevier, vol. 9(2), pages 163-190, April.
    8. Nagesh Kumar, 2006. "Emerging Multinationals : Trends, Patterns and Determinants of Outward Investment by Indian Enterprises," Microeconomics Working Papers 22108, East Asian Bureau of Economic Research.
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    More about this item


    outward foreign direct investment; location choice; Turkey;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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