Institutional quality similarity, corruption distance and inward FDI in Turkey

Mesut Eren () and Alfredo Jimenez

Journal of East European Management Studies, 2015, vol. 20, issue 1, 88-101

Abstract: In this paper we investigate the impact of institutional differences as a determinant of Turkish FDI inflows from OECD economies. We focus on the corruption distance between the home and host countries as a crucial part of institutional quality. Our results confirm that FDI flows are higher when they come from countries with low differences in corruption with Turkey. Conversely, FDI flows are negatively affected when there exists a large difference in corruption between the investing country and Turkey. This is explained by the ability of firms to obtain a higher return from their resources and capabilities in those environments with a similar idiosyncrasy to the one of their home country.

Keywords: Foreign Direct Investment; Turkey; OECD countries; institutional differences; corruption; multinational enterprises (search for similar items in EconPapers)
JEL-codes: D73 F21 F23 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.hampp-verlag.de/hampp_e-journals_JEMS.htm#115 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rai:joeems:jeems-2015-01-eren

Ordering information: This journal article can be ordered from
Rainer Hampp Verlag, Journals, Vorderer Lech 35, 86150 Augsburg, Germany. A subscripton is required to access pdf files. Pay per article is available at
http://www.hampp-verlag.de/Hampp_Recherche_e.htm

Access Statistics for this article

Journal of East European Management Studies is currently edited by Thomas Steger, editor-in chief

More articles in Journal of East European Management Studies from Rainer Hampp Verlag
Bibliographic data for series maintained by Rainer Hampp ( this e-mail address is bad, please contact ).