IMPACT OF COVID-19 PANDEMIC ON INTERNATIONAL CAPITAL MOBILITY: THE CASE OF TURKEY

Nermin Guney and Sertaç Hopoğlu
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Nermin Guney: ISKENDERUN TECHNICAL UNIVERSITY
Sertaç Hopoğlu: ISKENDERUN TECHNICAL UNIVERSITY, FACULTY OF BUSINESS ADMINISTRATION AND MANAGEMENT SCIENCES

Ekonomi Maliye Isletme Dergisi, 2021, vol. 4, issue 1, 56-74

Abstract: Multinationals operating in countries whose real sectors are depending on imports of raw materials, energy and capital goods, positively affect employment and economic growth of the host countries. Foreign capital can enter a country in the form of Foreign Direct Investments and Portfolio Investments. Turkey was among the countries offering highest interest rates before 2020 and the preference of the country by short-term portfolio investments pose risks for Turkey. Sudden exit and entry of such “hot money” may result in crises. COVID-19, is a respiratory infection declared as a pandemic by the World Health Organization as of March 11, 2020, and has been affecting all aspects of human life since. The spread of the COVID-19 in all countries of the world in a very short time necessitated taking measures in both health and economy on a global scale. In this study, positive and negative effects of the international capital mobility to and from Turkey during the pandemic are analyzed and its general effects on the Turkish economy are investigated. Whether the circumstances created by the pandemic caused a sudden stop in Turkey is also theoretically discussed.

Keywords: COVID-19; Pandemic; Globalization; International Capital Flows; Sudden Stop (search for similar items in EconPapers)
JEL-codes: F32 F62 F65 G01 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:gnx:emid43:2021-4-1-870510

DOI: 10.46737/emid.870510

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