Foreign direct investments (FDIs) in Turkish power sector: A discussion on investments, opportunities and risks
Selahattin Şi̇ri̇n ()
Renewable and Sustainable Energy Reviews, 2017, vol. 78, issue C, 1367-1377
Power sector is important for managing the transition towards sustainable and cleaner energy systems, and foreign investments can contribute to overcome the problems encountered in the process. Despite the vast literature on foreign direct investments (FDI) in other sectors, studies on the power sector have been limited to either developed economies or major developing economies such as China or India. Therefore, this study aims to discuss Turkish case by using panel data analysis for 2002–2012 period. Results have shown that the major drivers of FDI inflows in Turkish power sector were privatization and low real effective exchange rate during the period. In addition, Turkey has the potential and opportunities to attract more investments with the recent reforms and increasing incentives for renewable energy technologies; however, business environment and the quality of institutions may create obstacles for realizing its potential. Moreover, fiscal incentives and macroeconomic stability are important to sustain investments, and economic and institutional reforms, notably the EU integration process, are important for FDI inflows.
Keywords: Power sector; FDI; Turkey; Panel data (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:rensus:v:78:y:2017:i:c:p:1367-1377
Ordering information: This journal article can be ordered from
http://www.elsevier. ... 600126/bibliographic
Access Statistics for this article
Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski
More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().