IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa05p434.html
   My bibliography  Save this paper

Factors Influencing The Choice Of Fdi Locations In Turkey

Author

Listed:
  • Lale Berkoz
  • Sevkiye Sence Turk

Abstract

Turkey adopted neo-liberal policies in order to increase economic integration into international relation after 1980. As a result of these policies, foreign direct investment (FDI) inflows increased greatly. In 1980 there were 78 FDI firms in Turkey whereas the number increased by 9749 at the end of 2004. Turkey has become a hub of vast hinterland that extends from Balkans to Caucasus and represented a prime focus for foreign investment. For this reason, it is very important to know the characteristics and spatial distribution of FDI firms in Turkey. This study analyzes the spatial distribution of FDI (foreign direct investment) firms among the provinces in Turkey from 1990 to 2004. A model is developed to test the agglomeration economies as a demand, urbanization economies, market size, employment structure, government incentivies, information cost, locational wealth and infrastructure. The results support that agglomeration economies resulting from the concentration of manufacturing activities and density in the provinces; information cost and market size are stronger locational determinants in Turkey.

Suggested Citation

  • Lale Berkoz & Sevkiye Sence Turk, 2005. "Factors Influencing The Choice Of Fdi Locations In Turkey," ERSA conference papers ersa05p434, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa05p434
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa05/papers/434.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. C K Leung, 1996. "Foreign Manufacturing Investment and Regional Industrial Growth in Guangdong Province, China," Environment and Planning A, , vol. 28(3), pages 513-536, March.
    2. Joel Deichmann & Socrates Karidis & Selin Sayek, 2003. "Foreign direct investment in Turkey: regional determinants," Applied Economics, Taylor & Francis Journals, vol. 35(16), pages 1767-1778.
    3. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    4. Smith Jr. , Donald F. & Florida Richard, 1994. "Agglomeration and Industrial Location: An Econometric Analysis of Japanese-Affiliated Manufacturing Establishments in Automotive-Related Industries," Journal of Urban Economics, Elsevier, vol. 36(1), pages 23-41, July.
    5. Chien-Hsun Chen, 1996. "Regional determinants of foreign direct investment in mainland China," Journal of Economic Studies, Emerald Group Publishing, vol. 23(2), pages 18-30, May.
    6. I Eng & Y Lin, 1996. "Seeking Competitive Advantage in an Emergent Open Economy: Foreign Direct Investment in Chinese Industry," Environment and Planning A, , vol. 28(6), pages 1113-1138, June.
    7. Norman J. Glickman & Douglas P. Woodward, 1988. "The Location of Foreign Direct Investment in the United States: Patterns and Determinants," International Regional Science Review, , vol. 11(2), pages 137-154, August.
    8. Sourafel Girma, 2005. "Technology Transfer from Acquisition FDI and the Absorptive Capacity of Domestic Firms: An Empirical Investigation," Open Economies Review, Springer, vol. 16(2), pages 175-187, April.
    9. Jan Ondrich & Michael Wasylenko, 1993. "Foreign Direct Investment in the United States: Magnitudes and Location Choice of New Manufacturing Plants," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number fdius, November.
    10. Yingqi Wei & Xiaming Liu & David Parker & Kirit Vaidya, 1999. "The Regional Distribution of Foreign Direct Investment in China," Regional Studies, Taylor & Francis Journals, vol. 33(9), pages 857-867.
    11. Chakrabarti, Avik, 2003. "A theory of the spatial distribution of foreign direct investment," International Review of Economics & Finance, Elsevier, vol. 12(2), pages 149-169.
    12. Coughlin, Cletus C & Terza, Joseph V & Arromdee, Vachira, 1991. "State Characteristics and the Location of Foreign Direct Investment within the United States," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 675-683, November.
    13. Canfei He, 2002. "Information costs, agglomeration economies and the location of foreign direct investment in China1," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1029-1036.
    14. Blomstrom, Magnus & Kokko, Ari, 1997. "How foreign investment affects host countries," Policy Research Working Paper Series 1745, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oana Cristina POPOVICI, 2016. "Determinants Of Fdi In The New Eu Member States," Romanian Economic Business Review, Romanian-American University, vol. 11(2), pages 173-182, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sevkiye Sence Turk & Lale Berkoz, 2005. "A Spatial Model Of Change Of Fdi Firm Population In Istanbul," ERSA conference papers ersa05p437, European Regional Science Association.
    2. Sevkiye Sence Turk & Lale Berkoz, 2000. "Locational Determinants of Foreign Investment Firms in Turkey," Regional and Urban Modeling 283600096, EcoMod.
    3. Anthony Chin & Hong Junjie, 2005. "The Location Decisions of Foreign Logistics Firms in China : Does Transport Network Capacity Matter?," Trade Working Papers 22568, East Asian Bureau of Economic Research.
    4. Anthony Chin & Hong Junjie, 2005. "The Location Decisions of Foreign Logistics Firms in China : Does Transport Network Capacity Matter?," Trade Working Papers 22568, East Asian Bureau of Economic Research.
    5. Shaoming Cheng, 2008. "How can western China attract FDI? A case of Japanese investment," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 357-374, June.
    6. Jonathan Jones, 2017. "Agglomeration economies and the location of foreign direct investment: A meta-analysis," Journal of Regional Science, Wiley Blackwell, vol. 57(5), pages 731-757, November.
    7. Nielsen, Bo Bernhard & Asmussen, Christian Geisler & Weatherall, Cecilie Dohlmann, 2017. "The location choice of foreign direct investments: Empirical evidence and methodological challenges," Journal of World Business, Elsevier, vol. 52(1), pages 62-82.
    8. Chen, George Shih-Ku, 2009. "Agglomeration economies and the location of Taiwanese investment in China," MPRA Paper 13896, University Library of Munich, Germany.
    9. Sevkiye Sence Turk & Lale Berkoz, 2006. "Modelling the Intra-Metropolitan Location of Foreign Investment Firms in Istanbul," ERSA conference papers ersa06p576, European Regional Science Association.
    10. Kandogan, Yener, 2012. "Regional foreign direct investment potential of the states within the US," Journal of Economics and Business, Elsevier, vol. 64(4), pages 306-322.
    11. Joel Deichmann & Socrates Karidis & Selin Sayek, 2003. "Foreign direct investment in Turkey: regional determinants," Applied Economics, Taylor & Francis Journals, vol. 35(16), pages 1767-1778.
    12. George Shih-Ku Chen, 2009. "Determinants Of Taiwanese Investment In China: An Agglomeration Economies-Based Perspective," Monash Economics Working Papers 01-09, Monash University, Department of Economics.
    13. Blanc-Brude, Frédéric & Cookson, Graham & Piesse, Jenifer & Strange, Roger, 2014. "The FDI location decision: Distance and the effects of spatial dependence," International Business Review, Elsevier, vol. 23(4), pages 797-810.
    14. Chen, George Shih-Ku, 2009. "Determinants of Taiwanese investment in China: An agglomeration economies-based perspective," MPRA Paper 13894, University Library of Munich, Germany.
    15. Ulgado, Francis M. & Lee, Moonkyu, 2004. "The effects of nationality differences on manufacturing location in the US: a conjoint analysis approach," International Business Review, Elsevier, vol. 13(4), pages 503-522, August.
    16. Primandita Fitriandi & Makoto Kakinaka & Koji Kotani, 2014. "Foreign direct investment and infrastructure development in Indonesia: Evidence from province level data," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 4(1), pages 79-94, January.
    17. Sevkiye Sence Turk & Lale Berkoz, 2000. "Modelling the Intra-metropolitan Location of Foreign Investment Firms in Istanbul," Regional and Urban Modeling 283600095, EcoMod.
    18. Fabienne Boudier‐Bensebaa, 2005. "Agglomeration economies and location choice: Foreign direct investment in Hungary," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(4), pages 605-628, October.
    19. Belderbos, Rene & Carree, Martin, 2002. "The Location of Japanese Investments in China: Agglomeration Effects, Keiretsu, and Firm Heterogeneity," Journal of the Japanese and International Economies, Elsevier, vol. 16(2), pages 194-211, June.
    20. Aikaterini Kokkinou & Yannis Psycharis, 2005. "Foreign Direct Investment and Regional Attractiveness in Southeastern European countries," ERSA conference papers ersa05p382, European Regional Science Association.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa05p434. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.