Browsing by Subject "Investments, Foreign--Turkey."

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Open Access
The dynamics of foreign direct investment in Turkey from a historical perspective
(2008) Sönmez, Asena
In this thesis I discussed different components of foreign direct investment inflows from the perspective of hosting countries. Since foreign direct investment has been accepted as an important tool for the development of economies, FDI has taken particular attention by governments and there has been a huge competition to attract FDI. Last years show an improvement in FDI attraction of Turkey which can be explained through commitment to liberalization, privatization and influence of EU. In fact reforms made to fulfill EU criteria were only one among many influences of EU on FDI inflows. European countries have a tendency to channel FDI within the borders of EU which consequently renders EU membership is an important advantage for attracting FDI from EU countries. Signals of this advantage when coupled with the geographical position of Turkey showed itself positively in statistics of FDI in Turkey. To illustrate the effects of the relationship with the EU, I provide a comparative analysis with Romania and Argentina. Three of the cases-Turkey, Romania and Argentina- point out to iv the fact that structure of the economy, privatization and liberalization, stability and international networks (as in the case of the EU) matter considerably when we discuss general trends of FDI inflows.
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
Financial liberalization, foreign equity investment and volatility in emerging stock exchanges
(2008) Umutlu, Mehmet
In this thesis, the effects of financial liberalization and foreign equity investment on the return volatility of stocks in emerging stock exchanges are investigated. At the aggregate level analyses, it is shown that the degree of financial liberalization has an increasing impact on the aggregated total volatility of stocks. The analysis of the components of the aggregated total volatility indicates that that the degree of financial liberalization impacts the aggregated total volatility through aggregated idiosyncratic and local volatility. In the second part of the aggregate level analyses, the effect of foreign equity investment on the return volatility of stocks is investigated by using foreign equity flow data which is available for İstanbul Stock Exchange. It is found that foreign equity inflow and outflow have asymmetric effects on average stock-return volatility. While an inflow has a decreasing impact on aggregated stock return volatility, an outflow has an increasing impact. At the firm level analysis, the time-series variation in return volatility of stocks that are crosslisted on US exchanges is examined. Unlike previous studies in cross-listing literature, return volatility is analyzed using conditional heteroscedasticity models. It’s found that firms’ exposure to risks such as local and global market betas remain unchanged after cross-listing. Moreover, no change in the dynamics of the volatility of cross-listed stocks is detected. Furthermore, it’s shown that the mean level of conditional variance is not affected by the decision to cross-list. Thus, it is concluded that share holders of cross-listed stocks are not subject to adverse volatility effects.
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.