TURKEY’S COMPETITIVENESS IN TERMS OF DETERMINANTS OF FDI: A COMPARISON WITH HUNGARY AND POLAND

Year 2011, Volume: 3 Issue: 1, 171 - 183, 01.06.2011

Ismet Ates Mehmet Bolukbas

Abstract

Foreign direct investments (FDI) have increased rapidly in the world especially
after 1990s. Both developing and developed countries consider FDI as a source of
capital and they compete with each other to get more FDI to their countries. In
this context, the factors that make attractive the host country are becoming
important to attract FDI. Determinants of FDI classified differently by economic,
political and geographical in the literature.
In this study, the economic factors determine FDI in Turkey (market size, labor
costs, exchange rates, interest rates, economic growth rate, geographic location,
infrastructure, taxes, etc.) will be investigated and compared with data of Hungary
and Poland. As a result of this comparison, the factors attracting FDI and affecting
the competitiveness of Turkey against to Hungary and Poland will be determined

Keywords

Determinants of FDI, Turkey’s Competitiveness, Hungary, Poland

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