DOES HIGHER GEOPOLITICAL RISK LIMITS TURKISH FOREIGN DIRECT INVESTMENTS ?

The acceleration of capital transfers between countries after globalization has increased the importance of foreign direct investments in developing countries. Lack of capital in developing countries such as Turkey, constitute obstacles to investment. In this context, foreign direct investments that...

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Bibliographic Details
Main Authors: Muharrem Afşar, Başak Özarslan Doğan, Emrah Doğan
Format: Article
Language:English
Published: Mehmet Akif Ersoy University 2021-11-01
Series:Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
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Online Access:https://dergipark.org.tr/en/download/article-file/1504454
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Summary:The acceleration of capital transfers between countries after globalization has increased the importance of foreign direct investments in developing countries. Lack of capital in developing countries such as Turkey, constitute obstacles to investment. In this context, foreign direct investments that will come to the country are important in terms of eliminating the negativities caused by the lack of capital. Foreign direct investments are affected by many factors. One of them is the country's geopolitical risk. In this study, it is aim to investigate the impact of geopolitical risk on foreign direct investment in Turkey by using ARDL Bound Test for the 1998-2018 period. In addition to the geopolitical risk, real exchange rate, labor force, real GDP and savings that affect foreign direct investments were also included in the study. According to the analysis re-sults obtained, while geopolitical risk and labor force had a negative effect on FDI; real GDP, real exchange rate and savings have and positive effect on FDI.
ISSN:2149-1658