THE IMPACT OF DISTANCE IN RELIGION BETWEEN COUNTRIES ON FOREIGN DIRECT INVESTMENT FLOWS FROM THE EUROPEAN UNION (EU) DIRECTED TO TURKEY AND POLAND

Abstract

This paper examines a controversial issue: whether the psychic distance stimulus in religion is a possible reason of differently inflowing FDI from EU-Countries directed to Poland and Turkey. The examination highlights that after the application of a regression model between the psychic distance measures and FDI stocks, we are not in the position of claiming this. The difference between the FDI stocks of Poland and Turkey should not be necessarily a result of the differences in religion. Other dimensions should be included to the investigation.

Keywords

• Foreign direct investments, religion, psychic distance, Turkey, Poland