Benedetta Sandrone
Foreign Direct Investment in Turkey. A regional-level analysis.
Rel. Luigi Benfratello. Politecnico di Torino, Master of science program in Engineering And Management, 2024
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Abstract
This study examines the factors that influence foreign direct investment (FDI) in Turkey between 2011 and 2018. It specifically studies how local factors impact the investment decisions of multinational businesses (MNEs) in different locations. The study employs a conditional logit model to assess the influence of population, wages, infrastructure, and organized industrial zones on the attraction of foreign direct investment (FDI). The analysis is based on a dataset consisting of 1,192 investment cases. The study reveals that regions with greater populations and well-developed infrastructures greatly increase their attractiveness to foreign investors. Turkey's lower wages, in comparison to other nations, make it a compelling choice for investments that prioritize cost efficiency.
Moreover, the existence of well-structured industrial areas plays a vital role in enticing foreign direct investment (FDI) through the provision of readily available infrastructure and efficient administrative procedures
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