An analysis of foreign direct investment in Turkish manufacturing industry
This dissertation focuses on the determinants of foreign direct investment in Turkey's manufacturing industry. The empirical analysis of determinants of foreign direct investment in developing countries is much less studied than those of developed countries. Overall, the most revealed features of foreign direct investment technological superiority together with product differentiation were found not to be a paramount factor in Turkish industry. The Turkish industrial policies and resultant market structure turned out to have created the principle conditions for foreign direct investment to thrive. A highly concentrated market, with considerably high sectoral protection rates and relatively fast market growth were found as the most significant factors in determining the level of investment. The ability of foreign firms to take advantage of Turkish market conditions was found to play a major role. The most important of all their ability to prevail in sectors where high minimum capital was required, where managerial and high technical and production skills were of prime importance.