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Foreign Direct Investment in Turkey: A Comparison with the Central and Eastern European Countries

Year 2017, Issue: 626, 89 - 101, 01.04.2017

Ebru Tomris Aydoğan

Abstract

This paper examines the pattern of foreign direct investment (FDI) in the Central and Eastern European Countries (CEEC) and Turkey during the 1990-2013 period. The study aims to investigate the basic determinants of FDI inflows into the CEEC and Turkey, and accentuates the importance of transition-specific factors such as the level and method of privatization and the country risk in the CEEC and Turkey. A comparison of FDI inflows to Turkey and the CEEC is carried out in order to understand the main reasons for these inflows in both areas. Finally, a discussion of macroeconomic indicators in the CEEC and Turkey aims at providing a perspective for the developments in these countries.

Keywords

FDI Development TNCs Turkey and CEEC.

References

  • AGOSIN, Manuel R., and Roberto MACHADO; (2007), “Openness and the International Allocation of Foreign Direct Investment”, Journal of Development Studies, Vol. 43, No. 7, pp. 1234-47.
  • AGARWAL, J. P.; (1997), “Effects of Foreign Direct Investment on Employment in Home Countries”, Transnational Corporations, Vol. 6, No. 2, pp.33-55.
  • AHMED, Faisal, Arezki RABAH, and Funke NORBERT; (2007), “The Composition of Capital Flows to South Africa”, Journal of International Development, No. 19, pp. 275-294.
  • AKHTAR, Mohammed H. and Hugo RADICE; (2001), “Foreign Direct Investment in Pakistan: Trends and Policy Issues”, Journal of Asian Business, 17:3, pp. 89-96.
  • ALFARO, Laura, Areendam CHANDA, Sebnem KALEMLİÖZCAN, and Selin SAYEK; (2010), “Does Foreign Direct Investment Promote Growth? Exploring the Role of Financial Markets on Linkages”, Journal of Development Economics, 91, pp. 242-256.
  • ARICANLI, Tosun and Dani RODRIK; (1990), “An Overview of Turkey’s Experience with Economic Liberalisation and Structural Adjustment”, World Development, Vol. 18, No. 10, pp. 1343-1350.
  • BLONIGEN, Bruce A.; (2005), “A Review of the Empirical Literature on FDI Determinants”, Atlantic Economic Journal, Vol. 33, pp. 383-403.
  • CARSTENSEN, Kai and Farid TOUBAL; (2004), “Foreign Direct Investment in Central and Eastern European Countries: A Dynamic Panel Analysis”, Journal of Comparative Economics, Vol. 32, Issue: 1, pp. 3-22.
  • CENTRAL BANK OF TURKEY, (2013), Foreign Direct Investment in Turkey by Countries, available at evds.tcmb.gov.tr/yeni/ cbt-uk.html, retrieved 30/01/2014.
  • CENTRAL BANK OF TURKEY, (2007, 2011, 2012-various years), available at www.tcmb.gov.tr/yeni/eng/, retrieved 15/01/2014.
  • CSABA, Laszlo; (2000), “Between Transition and EU Accession: Hungary at the Millennium”, Europe-Asia Studies, Vol. 52, No. 5, pp. 805-827.
  • ÇUBUK, M. G.; (1999), How does Foreign Direct Investment affect Turkish Economy, Yeditepe University, Institute of Social Sciences, MA Thesis, Yeditepe University, Istanbul.
  • DEICHMAN, Joel, Socrates KARIDIS, and Selin SAYEK; (2003), “Foreign Direct Investment in Turkey: Regional Determinants”, Applied Economics, 35(16), pp. 1767-1778.
  • DOLLAR, David; (1992), “Outward-Oriented Developing Countries really do grow more rapidly: Evidence from 95 LDCs, 1976-85”, Economic Development and Cultural Change, Vol. 40(3) April, pp. 523-44.
  • DUTZ, Mark, Melek US, and Kamil YILMAZ; (2005), “Turkey’s Foreign Direct Investment Challenges: Competition, the Rule of Law and EU Accession”, in Bernard M. Hoekman and Sübidey TOGAN (eds), Turkey Economic Reform and Accession to the European Union, The World Bank and the Center for Economic Policy Research, Washington DC., pp. 261-293.
  • ERDILEK, Asım; (1986), “Turkey’s New Open-Door Policy of Direct Foreign Investment: A Critical Analysis of Problems and Prospects”, METU-Studies in Development, Vol. 13, No. 1-2, pp.171-191.
  • FINK, Philipp; (2006), “FDI-led Growth and Rising Polarisations in Hungary: Quantity at the Expense of Quality”, New Political Economy, Vol. 11, No. 1, March, pp. 47-72.
  • GEYIKDAĞI, V. Necla; (2011), “The Economic Views of a Nineteenth Century Ottoman Intellectual: The Relationship between International Trade and Foreign Direct Investment”, Middle Eastern Studies, 47(3), pp. 529-542.
  • GEYIKDAĞI, V. Necla and Filiz KARAMAN; (2013), “Foreign Direct Investment and Profit Transfers: The Turkish Case”, Journal of Balkan and Near Eastern Studies, Vol. 15, No. 4, pp. 367-382.
  • GEYIKDAĞI, V. Necla; (2010), “Foreign Direct Investment in Turkey: Inflows and Transfers”, Yeditepe University, Faculty of Economics and Administrative Sciences, Working Paper Series, No. E07, December 2010.
  • HARRISON, Glenn W., Thomas F. RUTHERFORD, and David G. TARR; (1996), “Economic Implications for Turkey of a Customs Union with the European Union”, Policy Research Paper 1599, The World Bank, Washington DC. ISTANBUL CHAMBER OF COMMERCE; (2002), Journal of Istanbul Chamber of Commerce.
  • MINISTRY OF ECONOMY; (2013), Uluslararası Doğrudan Yatırım Bülteni (FDI Information Report).
  • MOXON-BROWN, Edward; (2005), “Foreign Direct Investment in Turkey: The Implications of EU Accession”, Turkish Studies, Vol. 6, No. 3, pp. 321-340.
  • HAQUE, Nadeem U., Donald MATHIESON, and Sunil SHARMA; (1997), “Causes of Capital Inflows and Policy Responses to them”, Finance and Development, March, pp. 3-6.
  • INTERNATIONAL MONETARY FUND (IMF); (2003), International Financial Statistics. HÜRRİYET DAILY NEWSPAPER; (26 June 2006), “Foreign Direct Investment in Turkey”, pp. 9.
  • KARATAS, Cevat and Metin ERCAN; (2008), “The Privatisation Experience in Turkey and Argentina: A Comparative Study, 1986-2007”, METU-Studies in Development, Vol. 35, No. 2, December 2008, pp. 342-384.
  • KIZILOT, Şükrü; (2005), “The Picture of Tax Rates in the last Three Years”, Hürriyet Daily Newspaper, 28 September, pp. 9.
  • MARKUSEN, James R. and Anthony J. VENABLES; (1999), “Foreign Direct Investment as a Catalyst for Industrial Development”, European Economic Review, 43, pp. 335-56.
  • MCKAY, Andrew, Micheal BLEANEY, and Öner GÜNÇAVDI; (1998), “Financial Liberalisation and Private Investment: Evidence from Turkey”, Journal of Development Economics, Vol. 57, pp. 443-455.
  • ORGANIZATION OF ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD); (2014), available at http:// http://www. oecd.org/statistics/, retrieved 08/03/2014.
  • ORGANIZATION OF ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD); (2003), Economic Outlook, No. 73.
  • ÖNİŞ, Ziya; (1996), “Globalisation and Financial Blow Ups in the Semi-Periphery: Perspectives on Turkey’s Financial Crisis of 1994”, New Perspectives on Turkey, No. 15, Fall, pp. 45-64.
  • ÖNİŞ, Ziya and Ali B. GÜVEN; (2011), “Global Crisis, National Responses: The Political Economy of Turkish Exceptionalism”, New Political Economy, 4 April, pp. 1-25.
  • PRICEWATERHOUSE COOPERS (PwC); (2010), “Foreign Direct Investment in Central and Eastern Europe: A Case of Boom and Bust”, Economic Views, March, pp. 1-9.
  • REVENUE ADMINISTRATION, Turkish Tax System; (2011), available at http://www.gib.gov.tr/index.php?id=466, retrieved 20/01/2014.
  • TATOĞLU, Ekrem and Keith W. GLAISTER; (1998), “Western MNC’s FDI in Turkey: An Analysis of Location Specific Factors”, Management International Review, 38(2), pp. 133-159.
  • TURKISH REPUBLIC GENERAL DIRECTORATE OF FOREIGN INVESTMENT, TREASURY; (2011), May, Ankara, available at www.treasury.govt.tr/english/ybs/sector- ing+htm, retrieved 18/01/2014.
  • ULUSSEVER, Talat; (2008), “The Macroeconomic Determinants of Foreign Direct Investment in the Turkish Economy”, Journal of Social and Economic Development, Vol. 10, No. 1 (January-June), pp. 50-67.
  • UNCTAD; (2003), World Investment Report, Geneva.
  • UNCTAD; (2007), World Investment Report, Geneva.
  • UNCTAD; (2012), World Investment Report, Wir Series 2012, Geneva.
  • UNCTAD; (2013), Inward and Outward FDI Flows, annual, 1970-2012, available at http://unctatstat.unctad.org/TableViewer/tableView.aspx, retrieved 15/01/2014.
  • TCMB; (2013), Working Paper (Çalışma Tebliği), No: 13/4, November 2013.
  • TURKISH FOREIGN INVESTMENT LAW; (1954), No. 2626.
  • UNDERSECRECRETARIAT OF TREASURY; (March 2005), Foreign Capital Report, General Directorate of Foreign Capital, Ankara.
  • UNDERSECRECRETARIAT OF TREASURY; (2009), International Direct Investment Information Bulletin, General Directorate of Foreign Investment, August, Ankara.
  • UNDERSECRETARIAT OF TREASURY; (2011), Foreign Direct Investments in Turkey, General Directorate of Foreign Investment, May, Ankara, pp. 1-26.
  • VISZT, Erzsebet and Balazs BORSI; (2000), “Structural Changes in the Hungarian Economy”, Acta Economica, Vol. 51 (3), pp. 385-414.
  • WORLD BANK; (2013), available at http://data.worldbank. org/indicator/NY.GDP.MKTP.CD/countries?display=default, retrieved 07/03/2014.
  • WORLDWIDE TAX; (2011), Tax Rates Around the World, available at www.worldwidetax.com, retrieved 18/01/2014.

Türkiye’deki Doğrudan YabancıYatırım: Orta ve Doğu Avrupa Ülkeleriile Karşılaştırma

Year 2017, Issue: 626, 89 - 101, 01.04.2017

Ebru Tomris Aydoğan

Abstract

Bu araştırma 1990-2013 döneminde Orta ve Doğu Avrupa Ülkeleri (ODAÜ) ve Türkiye’deki doğrudan yabancı yatırım (DYY) yapısını incelemektedir. Çalışma, ODAÜ ve Türkiye’ye DYY girişlerinin temel belirleyicilerini araştırmakta ve ODAÜ ve Türkiye’deki özelleştirmenin seviye ve yöntemi ve ülke risk düzeyi gibi geçişe-özgü faktörlerin önemini vurgulamaktadır. Bu girişlerin temel belirleyicilerini anlamak için, Türkiye ve ODAÜ arasındaki DYY girişlerinin karşılaştırılması her iki alanda da yapılmaktadır. Son bölüm, ilgili ülkelerdeki son gelişim süreçlerini yansıtmak amacıyla ODAÜ ve Türkiye’deki makroekonomik göstergeleri tartışmaya ayrılmıştır.

Keywords

DYY Gelişme Uluslarüstü Şirketler Türkiye ve ODAÜ.

References

  • AGOSIN, Manuel R., and Roberto MACHADO; (2007), “Openness and the International Allocation of Foreign Direct Investment”, Journal of Development Studies, Vol. 43, No. 7, pp. 1234-47.
  • AGARWAL, J. P.; (1997), “Effects of Foreign Direct Investment on Employment in Home Countries”, Transnational Corporations, Vol. 6, No. 2, pp.33-55.
  • AHMED, Faisal, Arezki RABAH, and Funke NORBERT; (2007), “The Composition of Capital Flows to South Africa”, Journal of International Development, No. 19, pp. 275-294.
  • AKHTAR, Mohammed H. and Hugo RADICE; (2001), “Foreign Direct Investment in Pakistan: Trends and Policy Issues”, Journal of Asian Business, 17:3, pp. 89-96.
  • ALFARO, Laura, Areendam CHANDA, Sebnem KALEMLİÖZCAN, and Selin SAYEK; (2010), “Does Foreign Direct Investment Promote Growth? Exploring the Role of Financial Markets on Linkages”, Journal of Development Economics, 91, pp. 242-256.
  • ARICANLI, Tosun and Dani RODRIK; (1990), “An Overview of Turkey’s Experience with Economic Liberalisation and Structural Adjustment”, World Development, Vol. 18, No. 10, pp. 1343-1350.
  • BLONIGEN, Bruce A.; (2005), “A Review of the Empirical Literature on FDI Determinants”, Atlantic Economic Journal, Vol. 33, pp. 383-403.
  • CARSTENSEN, Kai and Farid TOUBAL; (2004), “Foreign Direct Investment in Central and Eastern European Countries: A Dynamic Panel Analysis”, Journal of Comparative Economics, Vol. 32, Issue: 1, pp. 3-22.
  • CENTRAL BANK OF TURKEY, (2013), Foreign Direct Investment in Turkey by Countries, available at evds.tcmb.gov.tr/yeni/ cbt-uk.html, retrieved 30/01/2014.
  • CENTRAL BANK OF TURKEY, (2007, 2011, 2012-various years), available at www.tcmb.gov.tr/yeni/eng/, retrieved 15/01/2014.
  • CSABA, Laszlo; (2000), “Between Transition and EU Accession: Hungary at the Millennium”, Europe-Asia Studies, Vol. 52, No. 5, pp. 805-827.
  • ÇUBUK, M. G.; (1999), How does Foreign Direct Investment affect Turkish Economy, Yeditepe University, Institute of Social Sciences, MA Thesis, Yeditepe University, Istanbul.
  • DEICHMAN, Joel, Socrates KARIDIS, and Selin SAYEK; (2003), “Foreign Direct Investment in Turkey: Regional Determinants”, Applied Economics, 35(16), pp. 1767-1778.
  • DOLLAR, David; (1992), “Outward-Oriented Developing Countries really do grow more rapidly: Evidence from 95 LDCs, 1976-85”, Economic Development and Cultural Change, Vol. 40(3) April, pp. 523-44.
  • DUTZ, Mark, Melek US, and Kamil YILMAZ; (2005), “Turkey’s Foreign Direct Investment Challenges: Competition, the Rule of Law and EU Accession”, in Bernard M. Hoekman and Sübidey TOGAN (eds), Turkey Economic Reform and Accession to the European Union, The World Bank and the Center for Economic Policy Research, Washington DC., pp. 261-293.
  • ERDILEK, Asım; (1986), “Turkey’s New Open-Door Policy of Direct Foreign Investment: A Critical Analysis of Problems and Prospects”, METU-Studies in Development, Vol. 13, No. 1-2, pp.171-191.
  • FINK, Philipp; (2006), “FDI-led Growth and Rising Polarisations in Hungary: Quantity at the Expense of Quality”, New Political Economy, Vol. 11, No. 1, March, pp. 47-72.
  • GEYIKDAĞI, V. Necla; (2011), “The Economic Views of a Nineteenth Century Ottoman Intellectual: The Relationship between International Trade and Foreign Direct Investment”, Middle Eastern Studies, 47(3), pp. 529-542.
  • GEYIKDAĞI, V. Necla and Filiz KARAMAN; (2013), “Foreign Direct Investment and Profit Transfers: The Turkish Case”, Journal of Balkan and Near Eastern Studies, Vol. 15, No. 4, pp. 367-382.
  • GEYIKDAĞI, V. Necla; (2010), “Foreign Direct Investment in Turkey: Inflows and Transfers”, Yeditepe University, Faculty of Economics and Administrative Sciences, Working Paper Series, No. E07, December 2010.
  • HARRISON, Glenn W., Thomas F. RUTHERFORD, and David G. TARR; (1996), “Economic Implications for Turkey of a Customs Union with the European Union”, Policy Research Paper 1599, The World Bank, Washington DC. ISTANBUL CHAMBER OF COMMERCE; (2002), Journal of Istanbul Chamber of Commerce.
  • MINISTRY OF ECONOMY; (2013), Uluslararası Doğrudan Yatırım Bülteni (FDI Information Report).
  • MOXON-BROWN, Edward; (2005), “Foreign Direct Investment in Turkey: The Implications of EU Accession”, Turkish Studies, Vol. 6, No. 3, pp. 321-340.
  • HAQUE, Nadeem U., Donald MATHIESON, and Sunil SHARMA; (1997), “Causes of Capital Inflows and Policy Responses to them”, Finance and Development, March, pp. 3-6.
  • INTERNATIONAL MONETARY FUND (IMF); (2003), International Financial Statistics. HÜRRİYET DAILY NEWSPAPER; (26 June 2006), “Foreign Direct Investment in Turkey”, pp. 9.
  • KARATAS, Cevat and Metin ERCAN; (2008), “The Privatisation Experience in Turkey and Argentina: A Comparative Study, 1986-2007”, METU-Studies in Development, Vol. 35, No. 2, December 2008, pp. 342-384.
  • KIZILOT, Şükrü; (2005), “The Picture of Tax Rates in the last Three Years”, Hürriyet Daily Newspaper, 28 September, pp. 9.
  • MARKUSEN, James R. and Anthony J. VENABLES; (1999), “Foreign Direct Investment as a Catalyst for Industrial Development”, European Economic Review, 43, pp. 335-56.
  • MCKAY, Andrew, Micheal BLEANEY, and Öner GÜNÇAVDI; (1998), “Financial Liberalisation and Private Investment: Evidence from Turkey”, Journal of Development Economics, Vol. 57, pp. 443-455.
  • ORGANIZATION OF ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD); (2014), available at http:// http://www. oecd.org/statistics/, retrieved 08/03/2014.
  • ORGANIZATION OF ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD); (2003), Economic Outlook, No. 73.
  • ÖNİŞ, Ziya; (1996), “Globalisation and Financial Blow Ups in the Semi-Periphery: Perspectives on Turkey’s Financial Crisis of 1994”, New Perspectives on Turkey, No. 15, Fall, pp. 45-64.
  • ÖNİŞ, Ziya and Ali B. GÜVEN; (2011), “Global Crisis, National Responses: The Political Economy of Turkish Exceptionalism”, New Political Economy, 4 April, pp. 1-25.
  • PRICEWATERHOUSE COOPERS (PwC); (2010), “Foreign Direct Investment in Central and Eastern Europe: A Case of Boom and Bust”, Economic Views, March, pp. 1-9.
  • REVENUE ADMINISTRATION, Turkish Tax System; (2011), available at http://www.gib.gov.tr/index.php?id=466, retrieved 20/01/2014.
  • TATOĞLU, Ekrem and Keith W. GLAISTER; (1998), “Western MNC’s FDI in Turkey: An Analysis of Location Specific Factors”, Management International Review, 38(2), pp. 133-159.
  • TURKISH REPUBLIC GENERAL DIRECTORATE OF FOREIGN INVESTMENT, TREASURY; (2011), May, Ankara, available at www.treasury.govt.tr/english/ybs/sector- ing+htm, retrieved 18/01/2014.
  • ULUSSEVER, Talat; (2008), “The Macroeconomic Determinants of Foreign Direct Investment in the Turkish Economy”, Journal of Social and Economic Development, Vol. 10, No. 1 (January-June), pp. 50-67.
  • UNCTAD; (2003), World Investment Report, Geneva.
  • UNCTAD; (2007), World Investment Report, Geneva.
  • UNCTAD; (2012), World Investment Report, Wir Series 2012, Geneva.
  • UNCTAD; (2013), Inward and Outward FDI Flows, annual, 1970-2012, available at http://unctatstat.unctad.org/TableViewer/tableView.aspx, retrieved 15/01/2014.
  • TCMB; (2013), Working Paper (Çalışma Tebliği), No: 13/4, November 2013.
  • TURKISH FOREIGN INVESTMENT LAW; (1954), No. 2626.
  • UNDERSECRECRETARIAT OF TREASURY; (March 2005), Foreign Capital Report, General Directorate of Foreign Capital, Ankara.
  • UNDERSECRECRETARIAT OF TREASURY; (2009), International Direct Investment Information Bulletin, General Directorate of Foreign Investment, August, Ankara.
  • UNDERSECRETARIAT OF TREASURY; (2011), Foreign Direct Investments in Turkey, General Directorate of Foreign Investment, May, Ankara, pp. 1-26.
  • VISZT, Erzsebet and Balazs BORSI; (2000), “Structural Changes in the Hungarian Economy”, Acta Economica, Vol. 51 (3), pp. 385-414.
  • WORLD BANK; (2013), available at http://data.worldbank. org/indicator/NY.GDP.MKTP.CD/countries?display=default, retrieved 07/03/2014.
  • WORLDWIDE TAX; (2011), Tax Rates Around the World, available at www.worldwidetax.com, retrieved 18/01/2014.
There are 50 citations in total.

Details

Primary Language English
Journal Section Research Article
Authors

Ebru Tomris Aydoğan

Publication Date April 1, 2017
Published in Issue Year 2017 Issue: 626

Cite

APA Aydoğan, E. T. (2017). Foreign Direct Investment in Turkey: A Comparison with the Central and Eastern European Countries. Finans Politik Ve Ekonomik Yorumlar(626), 89-101.
AMA Aydoğan ET. Foreign Direct Investment in Turkey: A Comparison with the Central and Eastern European Countries. FPEYD. April 2017;(626):89-101.
Chicago Aydoğan, Ebru Tomris. “Foreign Direct Investment in Turkey: A Comparison With the Central and Eastern European Countries”. Finans Politik Ve Ekonomik Yorumlar, no. 626 (April 2017): 89-101.
EndNote Aydoğan ET (April 1, 2017) Foreign Direct Investment in Turkey: A Comparison with the Central and Eastern European Countries. Finans Politik ve Ekonomik Yorumlar 626 89–101.
IEEE E. T. Aydoğan, “Foreign Direct Investment in Turkey: A Comparison with the Central and Eastern European Countries”, FPEYD, no. 626, pp. 89–101, April 2017.
ISNAD Aydoğan, Ebru Tomris. “Foreign Direct Investment in Turkey: A Comparison With the Central and Eastern European Countries”. Finans Politik ve Ekonomik Yorumlar 626 (April 2017), 89-101.
JAMA Aydoğan ET. Foreign Direct Investment in Turkey: A Comparison with the Central and Eastern European Countries. FPEYD. 2017;:89–101.
MLA Aydoğan, Ebru Tomris. “Foreign Direct Investment in Turkey: A Comparison With the Central and Eastern European Countries”. Finans Politik Ve Ekonomik Yorumlar, no. 626, 2017, pp. 89-101.
Vancouver Aydoğan ET. Foreign Direct Investment in Turkey: A Comparison with the Central and Eastern European Countries. FPEYD. 2017(626):89-101.