Browsing by Subject "Foreign Direct Investment"

Now showing 1 - 4 of 4

Open Access
The effects of aid on foreign direct investment : the roles of governance and financial market development
(2005) Karakaplan, Mustafa Uğur
This thesis investigates the effects of aid on foreign direct investment. The study takes into account the conditions such as sound governance within countries or well-developed financial markets, which are expected to effect this relationship. The hypothesis is that aid encourages foreign direct investment only where governance is of quality or financial markets are developed or both. The dynamic relationship is examined using an unbalanced panel data set, including 97 countries over the period of 1960-2004, where available. The results of the empirical analysis confirm the hypothesis with strong evidence.
Open Access
Employment effects of foreign direct investment in the Turkish manufacturing industry
(2010) Yiğit, Merve
This thesis studies the causal e§ects of foreign ownership on plant employment of varying degrees of FDI. I not only examine the employment e§ects of FDI ináows by using standard deÖnition of FDI as is standard in the literature, but I also look into the possible di§erentiale e§ects of di§erent levels of FDI and identify these e§ects at the 10, 25, 50, 75 and 100 percent foreign ownership in plants, respectively. These e§ects are tested using plant-level data from Annual Manufacturing Industry Statistics on the Turkish Manufacturing industry. To control for the possible selection-bias, a di§erence-in-di§erences approach is combined with propensity score matching. The advantage of this method is that it allows observing the divergence in the paths of employment between the treated plants and the matched control plants. It is shown that foreign acquisition in Turkish manufacturing industry leads to a signiÖcant increase in employment in the acquired plants when the standard deÖnition of FDI is used. The positive and statistically signiÖcant e§ects become visible in the acquisition year and continue in the subsequent periods. I Önd that after three years, the acquired plants outperform the control group in terms of employment by 21 percentage points. The signiÖcant positive employment e§ects are also observed when I only focus on the private establishments, excluding public establishments from the sample. The analysis also suggests that the positive employment e§ects occur together with increases in output and productivity. However, it is observed that as the dominance of foreign partners increases in foreign ownership percentages the employment e§ects of FDI ináows begin to decrease.
Open Access
Foreign direct investment in Turkey and Latin American countries: a comparative perspective, 1980-1995
(1998) Tutan, Mehmet Ufuk
In this study Foreign Direct Investment (FDI) experiences of Turkey between 1980 and 1995 are examined in comparison to the FDI experiences of the Latin American countries. Various FDI theories are presented, with a special emphasis on the Dependencia Approach. In addition, a historical background of FDI policies in the world, Latin America and Turkey is provided. The arranged FDI incentive systems and enacted legislations in Turkey are also reviewed. In the last part, some conclusions about the effects of post-1980 FDI policies on the Turkish economy are drawn.
Open Access
The role of human capital in productivity spillovers from FDI : an empirical analysis on Turkish manufacturing firms
(2009) Köymen, Seda
This thesis studies whether the existence or magnitude of possible productivity spillover effects from FDI differs across domestic firms that possess different levels of human capital. The human capital as an absorptive capacity has been investigated in the macro literature by Borensztein et al. (1998) and Xu (2000). The aim of this analysis is to investigate their question at firm level. To test for this, a firm-level unbalanced panel data from Turkish manufacturing industry over the period 1990-2001 is used. First, firm-level total factor productivity (TFP) is calculated using the Levinsohn-Petrin methodology. Then, the evidence regarding the productivity spillovers from FDI is provided. The analysis is conducted using both level and growth of TFP as dependent variable. The results of this spillover analysis suggest that there are negative spillovers through forward linkages on the TFP level but not on the growth rate of TFP. On the other hand, only evidence of positive backward spillovers and negative horizontal spillovers are found for the growth of TFP. Finally, a deeper investigation of whether domestic firms with higher human capital benefit more from these spillovers is undertaken. In level regressions,results show that domestic firms benefit from FDI through backward linkages if they possess human capital under a certain level. In growth regressions, the domestic firms benefit from FDI through horizontal channel if they possess above a minimum threshold level of human capital.