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Title: An empirical investigation of the impacts of foreign direct investment on the trade performance of Turkey, 1970-1999
Author: Cetin, Rahmi
ISNI:       0000 0001 3525 7082
Awarding Body: Nottingham Trent University
Current Institution: Nottingham Trent University
Date of Award: 2005
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This thesis analyses the trade performance of foreign and local firms in various Turkish manufacturing sectors for the years 1993, 1994, and 1995, and also investigates statistically the existence of a long run relationship between Foreign Direct Investment (FDI) and trade performance of Turkish economy over the period 1970-1999. In particular, the effect of FDI from major source countries (i.e., Japan, the US, and the EU) and the effect of FDI in major Turkish manufacturing industries (i.e., road vehicles, electrics & electronics, and textiles & clothing) on the trade performance of Turkey with these countries and within these sectors are statistically examined. In the trade and FDI literature several models have been developed to explain the possible effect of FDI on the trade performance of host countries. Among these, Kojima's (1973, 1975, 1982) hypothesis has been tested for many countries to distinguish between FDI flows from the US and Japan. The literature also argued that FDI in labour-intensive sectors have different market-orientation than those in capital and technology-intensive sectors of developing countries. These two hypotheses also have been tested for the case of Turkey over the period 1970-1999. The Engl e-Granger (1987) multivariate cointegration techniques are used to test the importance of FDI and other economic variables in determining the patterns of export and import growth in the selected period. The estimation results of the long run export supply models indicate that the extent and significance of the impact of FDI on Turkish exports depends on where it originates and in which industry of the host country it is located. In particular, FDI from the EU plays a significant role in the growth of Turkish exports, while Japanese FDI has a limited role in the growth of Turkish exports. Moreover, FDI in the textiles & clothing and electrics & electronics industries contributes positively and significantly to Turkish manufacturing exports. The outcomes of the long run import demand models show that unlike the complementary effect of total FDI, the impact of disaggregated FDI varies significantly depending on the source country and sectoral distribution of FDI. In particular, while FDI from the EU countries tends to depend significantly on foreign inputs, Japanese FDI seems to substitute imports for local production. Moreover, FDI in the road vehicles, electrics & electronics and textiles & clothing industries seems to increase imports rather than substitute for it.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available