A Difficult Relationship : Declining (but Productive) FDI Inflows in Turkey

This paper assesses two research questions: has the presence of foreign firms contributed to productivity increases in Turkey, and how could Turkey increase foreign direct investment inflows? First, the analysis applies dynamic regressions in diffe...

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Main Authors:	Kalemli-Ozcan, Sebnem, Sánchez-Martín, Miguel Eduardo, Thirion, Gilles
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	foreign direct investment direct foreign investment FDI DFI knowledge spillovers
Online Access:	http://documents.worldbank.org/curated/en/580621481812347679/A-difficult-relationship-declining-but-productive-FDI-inflows-in-Turkey http://hdl.handle.net/10986/25817

id	okr-10986-25817
recordtype	oai_dc
spelling	okr-10986-258172021-06-08T14:42:46Z A Difficult Relationship : Declining (but Productive) FDI Inflows in Turkey Kalemli-Ozcan, Sebnem Sánchez-Martín, Miguel Eduardo Thirion, Gilles foreign direct investment direct foreign investment FDI DFI knowledge spillovers This paper assesses two research questions: has the presence of foreign firms contributed to productivity increases in Turkey, and how could Turkey increase foreign direct investment inflows? First, the analysis applies dynamic regressions in differences over an AMADEUS firm-level data set. Similar to the results for other emerging countries, Turkish firms that received foreign direct investment will see an increase in productivity after the fourth year. The paper finds evidence of negative but small competition spillovers over domestic firms in the same sector of the multinational, as well as positive and large knowledge spillovers to domestic firms in broader two-digit sectors. This finding constitutes a case for foreign direct investment attraction policies in Turkey. Second, based on the findings of the cross-country regressions, the paper argues that Turkey could increase its attractiveness to foreign investors by strengthening institutional quality, in particular the rule of law, and mitigating exchange rate volatility. 2017-01-05T22:15:30Z 2017-01-05T22:15:30Z 2016-12 Working Paper http://documents.worldbank.org/curated/en/580621481812347679/A-difficult-relationship-declining-but-productive-FDI-inflows-in-Turkey http://hdl.handle.net/10986/25817 English en_US Policy Research Working Paper;No. 7918 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Turkey
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	foreign direct investment direct foreign investment FDI DFI knowledge spillovers
spellingShingle	foreign direct investment direct foreign investment FDI DFI knowledge spillovers Kalemli-Ozcan, Sebnem Sánchez-Martín, Miguel Eduardo Thirion, Gilles A Difficult Relationship : Declining (but Productive) FDI Inflows in Turkey
geographic_facet	Europe and Central Asia Turkey
relation	Policy Research Working Paper;No. 7918
description	This paper assesses two research questions: has the presence of foreign firms contributed to productivity increases in Turkey, and how could Turkey increase foreign direct investment inflows? First, the analysis applies dynamic regressions in differences over an AMADEUS firm-level data set. Similar to the results for other emerging countries, Turkish firms that received foreign direct investment will see an increase in productivity after the fourth year. The paper finds evidence of negative but small competition spillovers over domestic firms in the same sector of the multinational, as well as positive and large knowledge spillovers to domestic firms in broader two-digit sectors. This finding constitutes a case for foreign direct investment attraction policies in Turkey. Second, based on the findings of the cross-country regressions, the paper argues that Turkey could increase its attractiveness to foreign investors by strengthening institutional quality, in particular the rule of law, and mitigating exchange rate volatility.
format	Working Paper
author	Kalemli-Ozcan, Sebnem Sánchez-Martín, Miguel Eduardo Thirion, Gilles
author_facet	Kalemli-Ozcan, Sebnem Sánchez-Martín, Miguel Eduardo Thirion, Gilles
author_sort	Kalemli-Ozcan, Sebnem
title	A Difficult Relationship : Declining (but Productive) FDI Inflows in Turkey
title_short	A Difficult Relationship : Declining (but Productive) FDI Inflows in Turkey
title_full	A Difficult Relationship : Declining (but Productive) FDI Inflows in Turkey
title_fullStr	A Difficult Relationship : Declining (but Productive) FDI Inflows in Turkey
title_full_unstemmed	A Difficult Relationship : Declining (but Productive) FDI Inflows in Turkey
title_sort	difficult relationship : declining (but productive) fdi inflows in turkey
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/580621481812347679/A-difficult-relationship-declining-but-productive-FDI-inflows-in-Turkey http://hdl.handle.net/10986/25817
_version_	1764460224823951360

A Difficult Relationship : Declining (but Productive) FDI Inflows in Turkey

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