 EU Integration Process: Will Turkey Overcome the FDI Obstacles?Mehmet Basar and
Sebnem Tosunoglu
Managing Global Transitions, 2006, vol. 4, issue 2, 115-128 Abstract: This paper analyses Turkey's performance in attracting foreign direct investment (FDI) and highlights the key obstacles for FDI in Turkey. When compared with its main competitor countries, which includes the group of new EU member states and other candidate countries, it can be concluded that Turkey has a very low rate of FDI inflow. It can be argued that one of the major problems behind the low performance in FDI inflows is macroeconomic instability. In this paper we will also perform an empirical analysis to examine the relationship between FDIs and macroeconomic instability in the EU new member states and the candidate countries. According to the regression results, it was found that the GDP and openness have positive effects on the FDI, whereas current account balance and inflation have been found to be negative. On the other hand, the results related to external debt run opposite to our expectations. Keywords: foreign direct investment; EU integration; determinants of FDI; panel data analysis; EU candidate countries (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:mgt:youmgt:v:4:y:2006:i:2:p:115-128 Ordering information: This journal article can be ordered from Access Statistics for this article Managing Global Transitions is currently edited by Jana Hojnik More articles in Managing Global Transitions from University of Primorska, Faculty of Management Koper Contact information at EDIRC. |
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