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Türkiye'de Doğrudan Yabanci Yatirimlar ve Ekonomik Performans Foreign Direct Investment And Economic Performance In Turkey
| Content Provider | Semantic Scholar |
|---|---|
| Author | Mucuk, Mehmet Tahir, Mustafa |
| Copyright Year | 2009 |
| Abstract | With the globalization process, economic, commercial and technologic boundaries have become uncertain and in this way capital transfer has been possible between different countries. Capital transfers which is realized through short term portfolio investment and foreign direct investment (FDI) are very important especially for the countries of which national savings are inadequate. Developing countries prefer mostly FDI. Because short term portfolio investment may affect the exchange rates negatively by causing overvaluation for the home country’s national currency and damage the balance of current accounts. People controlling the hot money may rapidly withdraw it when they decide that home country’s balance of current accounts is not sustainable. This situation leads to deepen the crisis there. Therefore, developing countries campaign for attracting FDI generally. The International Monetary Fund’s Balance of Payments Manual defines FDI as “an investment that is made to acquire a lasting interest is an enterprise operating in an economy other than that of the investor, the investor’s purpose being to have an effective voice in the management of the enterprise.” The basic reason of FDI is international profit differences. In other words, it is because overseas profit is more than domestic one. Most of such investment is made by multinational enterprises. These enterprises are managed by a single headquarter and make manufacturing in other countries. FDI has different roles in a country’s development process. In developing countries adequate and necessary investment cannot be realized since their domestic savings rate is low and foreign savings rate is very low. Here FDI helps diminish domestic and foreign savings deficits. FDI provides a country with technology transfer and increase in employment as its reason of existence is producing goods and services. FDI also helps increase in tax revenues since it raises the added value. Moreover, FDI makes a contribution for making production more qualitative and workforce more productive. FDI has some positive effects on home country’s economy, but it also has some negative effects on it. Some of these negative effects are foreign control on home country’s key sectors; disordered economic integrity; abolition of protective foreign trade restrictions; providing unfair competitive advantage; damaging balance of payments through profit transfers and creating technologic dependency for the home country. There are very different arguments about the effects of FDI on economic growth. In some of the empirical studies, there are positive relationships between FDI and economic growth, but in some others exact opposite results can be seen. For example, Afsar (2008) investigated the relationship between FDI and economic growth for the Turkish economy for the period 1992:12006:3. The empirical results showed that there was a one-way relationship between FDI and economic growth and the direction |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://dergisosyalbil.selcuk.edu.tr/susbed/article/download/331/313 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
