the Basic Determinants of Foreign Direct Investment Inflows in Turkey (1988-2012)

Abstract

Foreign direct investment (FDI) -which is the investment of foreign assets into domestic structures, equipment, and organization- is a type of durable investment unlike foreign investment into the stock markets that leaves suddenly when the economy faces any challenge. FDI is also considered to be a significant source of economic development by increasing employment, productivity, and constituting a bridge for skill and technology transfers. Developing countries differ from each other in benefiting from and attracting FDI. Despite its potential, Turkey is not one of them that crucially succeed in inflows of FDI. The objective of this study is to figure out the determinants of foreign direct investment in Turkey. In order to undertake it, we performed an econometric model based in time series data analysis for the period of 1988-2012.