This study deals with direct foreign investment (DFI) in Turkish manufacturing
industry with two main objectives: First, the reasons of the failure of Turkish
economy in attracting sufficiently high levels of DFI is analysed as compared to the
experiences other developing countries that have been successful on this count.
Second, the impact of DFI in Turkish manufacturing industry is analysed in terms of
export, employment, and technology contribution as well as the comparative
behaviour of domestic and DFI firms. In addition to various data sets, the study
utilized the results collected from two separate surveys that were implemented to
domestic and DFI firms operating in Turkish manufacturing industry. Firstly, it
turned out that the failure of Turkish economy in attracting high inflows of DFI
cannot be attributed to investment climate problems, as the experiences of other
developing countries have shown. Secondly, there does not seem to be a significant
difference between the performances of domestic and DFI firms. While DFI seemed
to contribute positively to exports, insufficient contribution of DFI on employment
and negative balance of payments effects as well as the lack of its contribution in
terms of research and development and innovative activities were also notable. Then,
the study argues that rather than focusing solely on improvements in investment
climate and liberalizing eagerly the development regime, it seems more appropriate
to have a broad development strategy, in which both domestic investment and DFI are handled in an integrated approach, within the framework of appropriate
industrial, trade and technology policies.
| Identifer | oai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/3/12606332/index.pdf |
| Date | 01 August 2005 |
| Creators | Koldas, Tevfik |
| Contributors | Senses, Fikret |
| Publisher | METU |
| Source Sets | Middle East Technical Univ. |
| Language | English |
| Detected Language | English |
| Type | Ph.D. Thesis |
| Format | text/pdf |
| Rights | To liberate the content for public access |
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