The International Position of Turkey Regarding FDI Policies and Perspectives after 17/12/04, Winter 2004

Foreign direct investments (FDI) are a crucial variable in economic development. Presently they are the most important source of external finance for developing countries and the type of external resource that offers the highest probability of promoting sound growth. Turkey has not yet been able to attract a significant amount of FDI flows for a country with an economy of its size. In an international comparison the country demonstrates low performance and potential. This fact is partially due to the macroeconomic instability of the country in past years. From a microeconomic point of view the unattractiveness of the Turkish economy for FDI is related to the inadequacy of both its legal infrastructure and its privatization and liberalization policies. This climate is already changing and will change further in the coming years, when accession negotiations begin. Accession negotiations will produce positive changes in the macro and micro economic framework, thus stimulating the inflow of FDI...

The International Position of Turkey Regarding FDI Policies and Perspectives after 17/12/04, Winter 2004

Angelo Santagostino

Andrea Fornari