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

Kalemli-Ozcan, Sebnem ; Sá ; nchez-Martí ; n, Miguel Eduardo ; Thirion, Gilles

World Bank, Washington, DC

关键词: foreign direct investment;    direct foreign investment;    FDI;    DFI;    knowledge spillovers;   

DOI  :  10.1596/1813-9450-7918
RP-ID  :  WPS7918

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper assesses two researchquestions: has the presence of foreign firms contributed toproductivity increases in Turkey, and how could Turkeyincrease foreign direct investment inflows? First, theanalysis applies dynamic regressions in differences over anAMADEUS firm-level data set. Similar to the results forother emerging countries, Turkish firms that receivedforeign direct investment will see an increase inproductivity after the fourth year. The paper finds evidenceof negative but small competition spillovers over domesticfirms in the same sector of the multinational, as well aspositive and large knowledge spillovers to domestic firms inbroader two-digit sectors. This finding constitutes a casefor foreign direct investment attraction policies in Turkey.Second, based on the findings of the cross-countryregressions, the paper argues that Turkey could increase itsattractiveness to foreign investors by strengtheninginstitutional quality, in particular the rule of law, andmitigating exchange rate volatility.