Can FDI be a Panacea for Unemployment?: The Turkish Case

Mehtap Hisarciklilar; Derya Gültekin-Karakaş; Ahmet A. Asici

doi:10.1007/978-3-319-04349-4_3

Can FDI be a Panacea for Unemployment? The Turkish Case

Mehtap Hisarciklilar, Derya Gültekin-Karakaş, Ahmet A. Asici

School of Economics, Finance and Accounting

Istanbul Technical University

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

Abstract

Foreign Direct Investment (FDI) currently constitutes the main mechanism for economic globalisation. Despite the rising integration of the Turkish economy into the global economy, FDI performance of Turkey remained lower than many other developing countries until the early 2000s. This was followed by a period of a boom in which Turkey attracted record levels of FDI inflows in her history. Accompanying these inflows, the country also achieved high rates of growth. However, high unemployment rates continued to be a major problem. This chapter seeks to explain the role of FDI inflows in job creation in Turkey at a sectoral level for the period 2000–2008. We use panel data analysis and find a positive, but weak relationship between FDI inflows and employment. Merger and acquisitions, as the dominant mode of foreign entry in Turkey, and/or the dominance of the FDI inflows in the financial sector after 2004 might be the reasons for this weak employment effect. Moreover, the tendency for the shift of foreign investment from low-tech to medium-and high-tech industries in Turkish manufacturing could lead to the negligible effect on employment.

Original language	English
Title of host publication	Labor and Employment Relations in a Globalized World
Editors	Toker Dereli, Y. Pinar Soykut-Sarica, Asli Sen-Tasbasi
Publisher	Springer
Chapter	3
Pages	43-70
Number of pages	28
ISBN (Electronic)	9783319043494
ISBN (Print)	9783319043487
DOIs	https://doi.org/10.1007/978-3-319-04349-4_3
Publication status	Published - 6 Mar 2014

Publication series

Name	Contributions to Economics
Publisher	Springer
ISSN (Print)	1431-1933
ISSN (Electronic)	2197-7178

Keywords

Foreign Direct Investment
Foreign Investment
Foreign Capital
Foreign Direct Investment Inflow
Foreign Affiliate

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1007/978-3-319-04349-4_3

Cite this

Can FDI be a Panacea for Unemployment? The Turkish Case. / Hisarciklilar, Mehtap; Gültekin-Karakaş, Derya; Asici, Ahmet A.
Labor and Employment Relations in a Globalized World. ed. / Toker Dereli; Y. Pinar Soykut-Sarica; Asli Sen-Tasbasi. Springer, 2014. p. 43-70 (Contributions to Economics).

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

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