Foreign investment in producer services: the Turkish experience in the post-1980 period

Abstract

Since 1980, Turkey has been changing its growth strategy from protectionist import substitution to one more market-oriented and outward looking. As the restructuring has unfolded, the domestic market has opened up to foreigners. This paper discusses the increasing involvement in the economy of producer service firms with foreign capital. We describe 278 such firms: when they entered the Turkish market, their countries of origin (mostly European Community countries), industry groups and ownership structure. The most popular choice of location has been Istanbul.