FDI in Turkey driven by market access and quality of institutions
The determinants of foreign direct investment in Turkey were studied by analyzing data from 19 OECD countries between 1982 and 2007. Factors like national incomes, investment liberalization, and trade costs influence FDI in Turkey. EU membership prospects, government stability, infrastructure, and exchange rates also play a role. High labor costs and corruption attract FDI. The study found that FDI in Turkey is driven by market access and institution quality. Additionally, outward FDI stocks are linked to increased exports.