A Review of Foreign Direct Investments in Turkish Energy Sector

Year 2018, Volume: 3 Issue: 6, 1 - 16, 08.08.2018

Syed Fakhre Mahmud , Selahattin M Sirin

Abstract

Energy sector is one of the key
sectors that can affect economic development and contribute to sustainable
development goals. In addition, growing energy security concerns, maintaining
low costs and improving efficiency warrant implementing various government
policies and encouraging better coordination among different actors. It is in
this context, foreign investments can play an important role in developing
economies to address these issues. The literature on FDIs to other sectors is
colossal and well documented; however, studies on energy sector have been
limited and mostly carried out for the developed economies and major developing
economies. In this paper, a contribution to the literature has been made by
examining analyzing Turkish energy sector, which has promising prospects for
the Middle East and South-Eastern European regions. The review shows that
Turkey has taken steps to create a favorable environment for foreign investors;
yet, it still struggles with structural economic problems and energy-market
related issues. Moreover, European integration process has made significant
contributions to Turkish economy. In this regard, macroeconomic stability and
together with pursuit of economic and institutional reforms to complete
accession negotiations for EU membership is critical to stimulate further
investments into the energy sector.

Keywords

Foreign Direct Investment, Energy, Turkey

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