Browsing by Subject "Foreign direct investment"
Now showing 1 - 18 of 18
Results Per Page
Sort Options
Item Open Access The characteristics of domestic firms: materializing productivity spillovers from FDI(Routledge, 2017) Özer, S. K.; Böke, S. S.Using detailed firm-level data from Turkey, for 1991–2001, we analyze the importance of domestic firm capabilities in allowing for productivity spillovers from foreign direct investment. The absorptive capacities we investigate are technology gap, export status, and human capital of domestic firms. The study contributes to the literature by offering an alternative measure of human capital that would be more relevant in a country where there are labor market imperfections. The results provide supporting evidence for the role played by the human capital of domestic firms, i.e., the ratio of skilled, in realizing mainly horizontal spillovers. Copyright © Taylor & Francis Group, LLC.Item Open Access Does foreign direct investment promote growth? Exploring the role of financial markets on linkages(Elsevier BV, 2010) Alfaro, L.; Chanda, A.; Ozcan, S. K.; Sayek, S.Do multinational companies generate positive externalities for the host country? The evidence so far is mixed varying from beneficial to detrimental effects of foreign direct investment (FDI) on growth, with many studies that find no effect. In order to provide an explanation for this empirical ambiguity, we formalize a mechanism that emphasizes the role of local financial markets in enabling FDI to promote growth through backward linkages. Using realistic parameter values, we quantify the response of growth to FDI and show that an increase in the share of FDI leads to higher additional growth in financially developed economies relative to financially under-developed ones. © 2009 Elsevier B.V. All rights reserved.Item Open Access Doğrudan yabancı sermaye'nin hizmet sektörüne kayışı ve dış kaynak kullanımı(Marmara Üniversitesi, Sosyal Bilimler Enstitüsü, 2006) Ok, Süleyman TuluğDoğrudan Yabancı Sermaye'nin yapısı özellikle son yıllarda giderek hizmet sektörüne kaymaktadır. Son on yılda bilgi, iletişim ve üretim teknolojisindeki gelişmeler giderek daha fazla hizmetin bir yerde üretilip farklı bir yerde tüketilmesini mümkün kılmıştır. Lokasyon kavramının bu şekilde ortadan kalkmasının başlıca sonucu, hizmetlerin şirketlerin kendi ülkelerinden uzakta (offshore) ve uluslararası bir ölçekte üretilebilmesi olmuştur. Offshoring iki şekilde gerçekleşebilir: işin, şirketin başka bir ülkedeki kolu tarafından yapılması veya işin, başka bir ülkede başka bir şirket tarafından yapılması. Offshoring, üretim aktivitesindeki küresel kayışın son evresini temsil etmekte ve özellikle hizmet üretiminde yeni ve uluslararası bir işgücü dağılımı yaratmaktadır. Offshoring kavramı, detaylı incelenmesi gereken bir çok yeni motivasyon, yeni fırsat ama aynı zamanda yeni sorunu da beraberinde getirmiştir.Item Open Access The effects of capital inflows on Turkish macroeconomic performance(Springer/Kluwer Academic Publishers, 2015) Berument, Hakan; Denaux, Z. S.; Emirmahmutoglu, F.Capital inflows are important factor affecting macroeconomic performance, such as the real exchange rate, interest rates, output, and price level. However, the components of capital inflows are also important. Capital inflows in the forms of portfolio investment liabilities, foreign direct investment, and other investment liabilities may affect these macroeconomic variables differently. The main focus of this study is to analyze the behavior of key macroeconomic variables in response to the different components of capital inflow shocks for Turkey using monthly data from 2000:1 to 2012:12 by utilizing a vector autoregression model. © 2015, Springer Science+Business Media New York.Item Open Access The effects of transition and political instability on foreign direct investment inflows: Central Europe and the Balkans(Wiley-Blackwell Publishing Ltd., 2006) Brada, J. C.; Kutan, A. M.; Yigit, T. M.This paper examines the effects of transition and of political instability on foreign direct investment (FDI) flows to the transition economies of Central Europe, the Baltics and the Balkans. We find that FDI flows to transition economies unaffected by conflict and political instability exceed those that would be expected for comparable West European countries. Success with stabilization and reform increased the volume of FDI inflows. In the case of Balkan counties, conflict and instability reduced FDI inflows below what one would expect for comparable West European countries, and reform and stabilization failures further reduced FDI to the region. Thus, we find that the economic costs of instability in the Balkans in terms of foregone FDI have been quite high. © 2006 The Authors Journal compilation © 2006 The European Bank for Reconstruction and Development.Item Open Access FDI, productivity and financial development(Wiley-Blackwell Publishing Ltd., 2009) Alfaro, L.; Ozcan, S. K.; Sayek, S.This paper examines the effect of foreign direct investment (FDI) on growth by focusing on the complementarities between FDI inflows and financial markets. In our earlier work, we found that FDI is beneficial for growth only if the host country has well-developed financial institutions. In this paper, we investigate whether this effect operates through factor accumulation and/or improvements in total factor productivity (TFP). Factor accumulation - physical and human capital - does not seem to be the main channel through which countries benefit from FDI. Instead, we find that countries with well-developed financial markets gain significantly from FDI via TFP improvements. These results are consistent with the recent findings in the growth literature that shows the important role of TFP over factors in explaining cross-country income differences. © 2009 The Authors Journal compilation © 2009 Blackwell Publishing Ltd.Item Open Access Foreign direct investment in Turkey: regional determinants(Routledge, 2003) Deichmann, J.; Karidis, S.; Sayek, S.The uneven regional distribution of foreign direct investment (FDI) in Turkey poses an interesting question from the perspective of multinational firms (MNFs) and policy-makers alike. This paper focuses on the factors governing the location decisions of MNFs within Turkey with specific reference to policy implications. Using a conditional logit model, it is found that agglomeration, depth of local financial markets, human capital, and coastal access dominate location decisions for the aggregate sample of foreign investors in Turkey. This study reveals no evidence that public investment is successful in attracting MNFs to particular regions. Also importantly, the location determinants vary dramatically by broad industrial category, investment composition, and origin-country characteristics, including income category and region.Item Open Access Foreign equity trading and average stock-return volatility(Wiley-Blackwell Publishing, 2013) Umutlu, M.; Akdeniz, L.; Altay-Salih, A.We examine whether there is a relationship between foreign equity trading and average total volatility, measured as the value-weighted average of stock-return variance in the Istanbul Stock Exchange. We employ foreign equity purchase and sale data to track changes in foreign equity trading, which not only enable us to capture effective foreign investor participation but also to observe the potential asymmetric effects of incoming and outgoing funds on the average total volatility. Consistent with the implications of the asymmetric information hypothesis, we find that net equity flow is positively associated with average total volatility. Furthermore, we show that net equity flow affects the average total volatility through the local and idiosyncratic volatilities, suggesting that foreign investors engage in the production of firm specific and market wide information.Item Open Access Introduction(Palgrave Macmillan, 2001) Togan, Sübidey; Balasubramanyam, V. N.; Togan, Sübidey; Balasubramanyam, V. N.The papers that make up this volume were presented at the conference on Turkey, Central and East European (CEE) countries and the EU, held at Bilkent University, Ankara, Turkey, on 9–10 March 1996. A legal structure that promotes entrepreneurship, competition and the institution of prudent monetary and fiscal policies is a prerequisite for membership of the EU. This volume analyses these and related issues in the context of the Turkish and CEE economies.Item Open Access Labor market effects of knowledge spillovers(ODTÜ İİBF, 2010) Bayraktar-Sağlam, B.; Sayek, SelinThis paper studies the diffusion of technology that occurs from Multinational Enterprises to domestic firms via worker mobility. It concentrates on the wage and unemployment implications of diffusion of knowledge through labor mobility in the local labor market. We construct a heterogeneous search and matching model where the labor mobility is restricted by the existence of binding contracts. Findings of the model reveal that knowledge spillovers through the movement of workers from foreign to local firm lower the firm premium and the skill premium. Further results indicate that technological progress raising the productivity gap between the foreign and the local film leads to an increase in the unemployment rate, the fim1 premium and the skill premium.Item Open Access Preface(Palgrave Macmillan, 2001) Togan, Sübidey; Balasubramanyam, V. N.; Togan, Sübidey; Balasubramanyam, V. N.This book offers a comparative study of the Central and Eastern European and Turkish economies that analyses the implications of EU enlargement. The contributors discuss issues related to the creation of a legal infrastructure that encourages entrepreneurial initiative, fair competition, market forces and investor confidence. They assess the benefits of following prudent monetary and fiscal policies together with appropriate competition, trade and foreign direct investment policies in Turkey and Central and Eastern Europe.Item Open Access Real exchange rate, wealth, wages and foreign direct investment in Turkey(Bilkent University, 1996) Böke, C. MertIn this study, the relationship between real exchange rates, relative wealth, relative wages and foreign direct investment inflows to Turkey is examined. Fixed effects regressions are used on foreign direct investment inflow data from eight countries over the period 1986-1995, The results show that a depreciation of the Turkish lira, an increase in Turkish wages relative to the corresponding source country wages, and a decrease in relative wealth are associated with increases in FDI inflows to Turkey.Item Open Access Relationship between financial crisis and foreign direct investment in developing countries using semiparametric regression approach(Taylor & Francis, 2010) Ucal, M.; Özcan, K. M.; Bilgin, M. H.; Mungo J.This paper analyzes whether and to what extent the inflow of FDI is affected before and after the occurence of a financial crisis in developing countries. The paper uses a semiparametric Generalized Partial Linear Models (GPLM) regression approach to check the appropriateness and effectiveness of financial crisis in the FDI regression model. The results indicate that FDI inflows decrease in the years after a financial crisis and an upturn in FDI inflows the year before a financial crisis hit the country.Item Open Access Sectoral determinants of the location choice of MNCs(Bilkent University, 2007) Demir, Fitnat BanuThis thesis examines the determinants of multinational companies (MNCs)’ location choices estimating conditional or nested logit model using a dataset of more than 17,000 firms invested in 38 developing countries over the period 1980-2004. In addition, this dataset has an exceptional feature – it allows identifying the sectors that these firms invest in. The sectoral analysis is undertaken both at 2-digit ISIclassification and aggregate level where sectors are lumped according to their tradability or technology intensity. The empirical results suggest that the determinants of the probability that a MNC invests in a particular country vary across sectors. Thus, the sectoral composition of FDI is essential for understanding its economic geography.Item Open Access A stunt, a shut-down, and heavy diplomatic propaganda: the story of Curtiss-Wright Corporation’s penetration to the Turkish market(University of Bucharest, 2020) İplikçi, MuratThis article analyzes Curtiss-Wright Aerospace Industry’s inflow process to the Turkish market in the early 1930s. In these years, aviation was a quite significant industry that contributed economic, military, and political prestige of the states. Progressive decision-makers of Turkey were looking for an opportunity to establish a partnership with a multinational company to manufacture its own aircraft because the young state was destitute of such technology. Curtiss-Wright was eager to do business in Turkey; two American pilots’ record-breaking flight from New York to Istanbul in 1931; withdraw of German Junkers Aerospace Industry’s from Turkey in 1929 and American Ambassador Joseph Grew’s public diplomacy between 1927 to 1932, helped this process.Item Open Access Turkey: trade policy review(Wiley-Blackwell Publishing Ltd., 2005) Togan, S.The purpose of the paper is to discuss the main issues highlighted in the Trade Policy Review: Turkey 2003. The paper studies first the main developments in Turkey's trade regime and trade performance. Next it discusses Turkish trade policy emphasising the measures affecting imports, exports and foreign direct investment. The paper points out that agriculture is highly protected, and that autonomous reforms have been implemented in some of the services sectors of the economy. Since joining the EU will require Turkey to adopt and implement the whole body of EU legislation - the acquis communautaire in all areas, Turkey needs to liberalise its agricultural and services sectors further. Finally, the paper discusses an issue that has largely been neglected in Trade Policy Reviews. It is the sustainability of current account. The paper stresses that Turkey needs to pay close attention to the sustainability of the current account. © Blackwell Publishing Ltd 2005.Item Open Access Turkey: trade policy review, 2007(Wiley-Blackwell Publishing Ltd., 2010) Togan, S.The purpose of this paper is to discuss the main issues highlighted in the Trade Policy Review: Turkey 2007. The paper studies first the main developments in Turkey's trade regime and trade performance. Next it discusses Turkish trade policy under the headings of measures affecting imports, exports and foreign direct investment. The paper notes that the formation of the 1995 EU-Turkey customs union has contributed to a significant increase in the contestability of domestic markets through infusing predictability, transparency and stability to trade policy as well as by liberalising market access. But free trade in industrial goods between Turkey and the EU could still not be established mainly because of non-tariff barriers and in particular because of the various problems faced in the elimination of technical barriers to trade (TBT). The final section of the paper discusses first the role of standards and conformity assessment in general terms and thereafter evaluates critically the Turkish approach to elimination of TBTs. © 2009 Blackwell Publishing Ltd.Item Open Access What drives foreign direct investment into emerging markets? Evidence from Turkey(2004) Ok, S.T.The total volume of foreign direct investment (FDI) has increased immensely over the past decade and has become an important impetus behind the economic growth in developing countries. This paper examines the driving factors of FDI in Turkey. The data were collected through a survey of managers and expatriates of firms with foreign capital operating in Turkey and analyzed using nonparametric and parametrical statistical tests. The results show that foreign investors in Turkey regard economic and political instability as the most important barrier and an overwhelming majority of the respondents recommend the establishment of political stability in the country.