Foreign Direct Investment in Turkey: Enhancing its Impact on Economic Development

Year 2021, Volume: 10 Issue: 2, 69 - 87, 15.05.2021

Joel Deichmann

Abstract

This paper examines the relationship between foreign direct investment (FDI) and economic development in the Republic of Turkey, beginning with a survey of existing scholarly literature on past FDI in Turkey and its effects. Special attention is paid to the question of whether FDI encourages economic growth with emphasis connections to local firms. The issue of rising protectionism toward globalization is addressed, as is the importance of FDI policy. The impact of FDI on development in Turkey is related to the national origins of multinational enterprises (MNEs) as their productive activities and level of internalization. This paper underscores the importance investment agencies such as Invest in Turkey, sets forth some general suggestions for promoting FDI to benefit the host country through knowledge transfer and capital transfers, and urges policymakers consider individual projects on a case-by-case basis, especially given the scarcity of capital in the wake of the COVID-19 pandemic.

Keywords

Foreign direct investment, Turkey, investment policy, investment impacts

Supporting Institution

Istanbul Technical University and Invest in Turkey. An earlier version of this paper was presented at the International Multidisciplinary Conference on Foreign Direct Investment, Investment Promotion, and Economic Development. Istanbul Technical University, Istanbul, Turkey on 25 October 2018.

Türkiye'de Uluslararası Doğrudan Yatırım: Ekonomik Kalkınma Üzerindeki Etkisinin Artırılması

Abstract

Bu makale, Türkiye'deki geçmiş Uluslararası Doğrudan Yatırım (UDY) ve etkileri hakkında mevcut akademik literatürün bir taramasıyla başlayarak, Türkiye Cumhuriyeti'ndeki UDY ile ekonomik kalkınma arasındaki ilişkiyi incelemektedir. UDY’nin ekonomik büyümeyi teşvik edip etmediği sorusuna, yerel firmalarla bağlantılara vurgu yapılarak özel bir önem verilmektedir. UDY politikasının önemi gibi, küreselleşmeye yönelik artan korumacılık sorunu da ele alınmaktadır. UDY’nin Türkiye'deki kalkınma üzerindeki etkisi, çok uluslu işletmelerin (ÇUİ) üretken faaliyetleri ve içselleştirme düzeyleri gibi ulusal kökenleri ile de ilgilidir. Bu makale, Invest in Turkey gibi yatırım ajanslarının öneminin altını çizmekte, bilgi transferi ve sermaye transferleri yoluyla ev sahibi ülkeye fayda sağlayacak UDY’yi teşvik etmek için bazı genel öneriler ortaya koymakta ve özellikle COVID-19 salgını sonrasında sermaye kıtlığı göz önüne alındığında politika yapıcılarını her projeyi tek tek vaka bazında değerlendirmeye teşvik etmektedir.

Keywords

Uluslararası doğrudan yatırım, Türkiye, yatırım politikası, yatırım etkileri

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