Foreign Direct Investment in Turkey: Regional Determinants

Socrates Karidis, Selin Sayek, Joel Deichmann

Research output: Contribution to journalArticle

50 Citations (Scopus)

Abstract

The uneven regional distribution of foreign direct investment (FDI) in Turkey poses an interesting question from the perspective of multinational firms (MNFs) and policy-makers alike. This paper focuses on the factors governing the location decisions of MNFs within Turkey with specific reference to policy implications. Using a conditional logit model, it is found that agglomeration, depth of local financial markets, human capital, and coastal access dominate location decisions for the aggregate sample of foreign investors in Turkey. This study reveals no evidence that public investment is successful in attracting MNFs to particular regions. Also importantly, the location determinants vary dramatically by broad industrial category, investment composition, and origin-country characteristics, including income category and region.

Original languageEnglish
Pages (from-to)1767-1778
Number of pages12
JournalApplied Economics
Volume35
Issue number16
DOIs
Publication statusPublished - 2003

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Foreign direct investment
Turkey
Multinational firms
Location decision
Agglomeration
Foreign investors
Politicians
Coast
Conditional logit model
Policy implications
Financial markets
Income
Human capital
Factors
Public investment

Cite this

Foreign Direct Investment in Turkey : Regional Determinants. / Karidis, Socrates; Sayek, Selin; Deichmann, Joel.

In: Applied Economics, Vol. 35, No. 16, 2003, p. 1767-1778.

Research output: Contribution to journalArticle

Karidis, Socrates ; Sayek, Selin ; Deichmann, Joel. / Foreign Direct Investment in Turkey : Regional Determinants. In: Applied Economics. 2003 ; Vol. 35, No. 16. pp. 1767-1778.
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