Munich Personal RePEc Archive

Determinants of Turkish FDI abroad

Kayam, Saime Suna and Hisarciklilar, Mehtap (2009): Determinants of Turkish FDI abroad. Published in: Topics inMiddle Eastern and North African Economies , Vol. 11, No. September 2009 (September 2009)

[img]
Preview
PDF
MPRA_paper_17813.pdf

Download (162kB) | Preview

Abstract

ABSTRACT This study examines the determinants of Turkish outward FDI employing a gravity model. The model estimates the impact of traditional gravity variables, as well as openness, labour productivity, infrastructure, institutions and economic stability on FDI outflows from Turkey to 11 countries, which account for approximately 90% of Turkish outward FDI stock, over the period 1999-2005 years using panel data random effects technique. The results reveal that Turkish FDI has a market-seeking pattern with foreign markets being substituted for domestic market by Turkish firms. On the other hand, economic instability in Turkey emerges as a major deterrent of FDI outflows. Additionally, our results suggest the possibility of FDI in vertically differentiated products in host countries by Turkish investors as well as the importance of push factors.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.