ISSN:2149-083X

THE ECONOMICAL IMPACT OF FOREIGN DIRECT INVESTMENTS AND ‘THE FOREIGN DIRECT INVESTMENTS IN TURKEY’


With the globalization of capital, ideas such as the production of a company outside the country's borders or the purchase of production facilities outside the country have gained momentum in terms of feasibility. In recent years, the acceleration of the flow of foreign direct investments towards the developing countries, especially by the firms in developed countries, is also related to the idea of maximizing the revenues of the companies. One of the most important obstacles in the economic development process in developing countries is the inadequacy of savings due to the low savings in the country. The low level of national income, especially in underdeveloped countries, leads to a decline in state investment policies. The importance of direct foreign capital increases in the face of such deficits in the balance of payments and unemployment. Foreign direct investments are usually conducted through multinational companies. Some of the companies operating in more than one country; Wal-Mart Stores (retail sector), Shell (oil sector), Exxon Mobil (oil sector), BP (oil sector), Toyota Motor (motor vehicles), Sinopec (oil and chemistry). The total sales of such firms are more than the exports of many states and these companies direct the international financial market. The spread of direct foreign capital in the world Although it was in the 1950s, foreign capital started to come to our country seriously after 2000. During the 2001 crisis, many banks were bought by foreigners, and the investments were concentrated in areas such as mergers and acquisitions through privatizations, especially through telecommunication. . As of the end of 2018, considering that only 1% of the foreign direct capital in the world has invested in our country, it will be understood from the tables in the study that we have lagged behind many countries attracting foreign direct investment even though there has been an increase in the number of foreign direct investors in the last 10 years


Keywords


Foreign Direct Investment, Foreign Direct Investment Development Path of Importance in the country, Multinational Corporations, Turkey Incoming Foreign Direct Investment

Author : Emre ÇELİK
Number of pages: 207-218
DOI: http://dx.doi.org/10.29228/TIDSAD.37868
Full text:
The Journal of Turk-Islam World Social Studies
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