Increasing foreign direct investment amount is very significant especially for developing countries in
order to improve economy. Because of this situation, defining the factors that affect foreign direct investment
is essential. Within this context, the main purpose of this study is to identify the influencing factors of
foreign direct investment in Turkey. Within this scope, annual data for the periods between 1988 and 2015
was analyzed in this study. In addition to this situation, Multivariate Adaptive Regression Splines (MARS)
method was used so as to achieve this objective. According to the results of the analysis, it was determined
that current account deficit problem of Turkey affects foreign direct invest negatively. It was identified that if
the ratio of current account deficit to total GDP is higher than “3.57”, foreign direct investment goes down.
This result shows that foreign investors do not prefer to make investment since current account deficit increases
fragility in the economy and it is considered as the leading indicator of the economic crisis. While
considering the results of this study, it was recommended that current account deficit problem should be
minimized to attract foreign investors make investment in Turkey.
Primary Language | English |
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Journal Section | Makaleler |
Authors | |
Publication Date | January 1, 2018 |
Submission Date | November 1, 2017 |
Published in Issue | Year 2018 Volume: 10 Issue: 18 |