Effects of Economic Complexity on Foreign Direct Investment: Multidimensional Panel Data Analysis

Year 2025, Volume: 3 Issue: 1, 87 - 97, 28.06.2025

Mahmut Mücahit Ateş , Cem Kaan Arslan

Abstract

This study investigates the impact of economic complexity on foreign direct investment (FDI). With the rise of knowledge-based economies, countries' competitive advantage is increasingly dependent not only on natural resources but also on their capacity to produce sophisticated, knowledge-intensive goods. Economic complexity reflects a country's ability to produce high value-added products requiring advanced skills and technological infrastructure. Using data from 127 countries classified by income levels for the period 2000–2019, a multidimensional panel data analysis was conducted. The findings reveal a statistically significant and positive relationship between the Economic Complexity Index (ECI) and FDI. This indicates that countries with higher economic complexity attract more foreign investment. These results align with the literature emphasizing the importance of technology, innovation, and a skilled labor force in shaping FDI decisions. Furthermore, the study suggests that developing countries should adopt knowledge-based development strategies to achieve sustainable growth. Enhancing education, promoting innovation, and strengthening institutional capacity are essential for increasing economic complexity and, consequently, a country's attractiveness to foreign investors. Thus, economic complexity emerges as a critical determinant of modern investment patterns in the global economy.

Keywords

Economic Complexity Index , Foreign Direct Investments , Multi Dimensional Panel Data

Ekonomik Kompleksitenin Doğrudan Yabancı Yatırım Üzerine Etkileri: Çok Boyutlu Panel Veri Analizi

Abstract

Bu çalışma, ekonomik kompleksitenin doğrudan yabancı yatırımlar (DYY) üzerindeki etkisini incelemektedir. Bilgi temelli ekonomilerin yükselişiyle birlikte, ülkelerin rekabet gücü artık yalnızca doğal kaynaklara değil, aynı zamanda sofistike bilgiye dayalı üretim kapasitelerine de bağlı hale gelmiştir. Ekonomik kompleksite, ülkelerin bilgi yoğunluklu ve yüksek katma değerli ürünler üretme yetkinliğini yansıtan bir göstergedir. Çalışmada, 2000-2019 döneminde gelir seviyelerine göre sınıflandırılan 127 ülkenin verileri kullanılarak çok boyutlu panel veri analizi gerçekleştirilmiştir. Elde edilen bulgular, Ekonomik Kompleksite İndeksi (ECI) ile DYY arasında pozitif ve istatistiksel olarak anlamlı bir ilişki olduğunu ortaya koymaktadır. Bu sonuç, yüksek kompleksiteye sahip ülkelerin daha fazla yabancı yatırım çektiğini göstermektedir. Bulgular, teknoloji, inovasyon ve nitelikli iş gücünün DYY kararlarında belirleyici unsurlar olduğunu vurgulayan literatür ile uyumludur. Ayrıca, gelişmekte olan ülkelerin sürdürülebilir kalkınma hedeflerine ulaşabilmeleri için bilgi temelli politikaları benimsemeleri gerektiği sonucuna varılmıştır. Bu bağlamda, eğitim, inovasyon ve kurumsal kapasitenin artırılması, ekonomik kompleksitenin geliştirilmesinde kritik öneme sahiptir.

Keywords

Ekonomik Kompleksite İndeksi , Doğrudan Yabancı Yatırımlar , Çok Boyutlu Panel Veri Analizi

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