Turkey’s Performance in Attracting Foreign Direct Investment: Implications of EU Enlargement

Henry Loewendahl () and Ebru Ertugal-Loewendahl ()
Additional contact information
Henry Loewendahl: PricewaterhouseCoopers
Ebru Ertugal-Loewendahl: Institute for Turkey-European Relations

No 8, Economics Working Papers from European Network of Economic Policy Research Institutes

Abstract: This paper analyses Turkey's performance in attracting foreign direct investment (FDI). The paper is divided into three main sections. The first section analyses FDI in Turkey over time and relative to Central and Eastern Europe. The second section identifies the key factors determining investment location and on the basis of these factors assesses Turkey's competitive position. The third section examines the impact of EU enlargement on FDI in Turkey and explores whether the IMF agreement is sufficient for reducing obstacles to investment. The paper concludes that Turkey has under-performed in attracting FDI due to the slow pace of privatisation and political-institutional obstacles, of which chronic inflation is a manifestation. Structured interviews with global companies also highlighted lack of investment promotion as a major obstacle. While the IMF agreement will increase privatisation and reduce inflation, EU membership is vital if Turkey is to successfully compete for foreign investment.

Pages: 48 pages
Date: 2001-09
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.enepri.org/Publications/WP008.pdf (application/pdf)

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:epr:enepwp:008

Ordering information: This working paper can be ordered from
ENEPRI c/o CEPS Place du Congrès 1 1000 Brussels Belgium
http://www.enepri.org

Access Statistics for this paper

More papers in Economics Working Papers from European Network of Economic Policy Research Institutes ENEPRI c/o CEPS Place du Congrès 1 1000 Brussels Belgium. Contact information at EDIRC.
Bibliographic data for series maintained by CEPS ( this e-mail address is bad, please contact ).