ABSTRACT Over the past two decades, Turkey has recorded a substantial increase in the level of annual foreign direct investment (FDI) inflows. Building on the prior literature, this paper provides an empirical analysis of location-related determinants of FDI. This is undertaken by means of a co- integration analysis of major locational factors impacting upon the level of FDI inflows for the period 1980-1998. The evidence from this study supports the contention that while Turkey offers several location advantages to foreign investors in terms of market size, infrastructure, openness of the economy and market attractiveness, the lack of exchange rate and economic stability has hindered its efforts to harbor much higher volume of FDI.

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Available from: Ekrem Tatoglu, Aug 13, 2015
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    • "On the contrary, other researchers believed that FDI might bring a crowding effect on domestic investment, external vulnerability and dependence, destructive competition of foreign affiliates with domestic firms and a market-stealing effect as a result of poor absorptive capacity (Krstevska and Petrovska, 2012; Lipsey, 2004; Nourbakhshian et al., 2012). Nowadays, renewed research interest in FDI inflows stems from the change of perspectives among policy makers in host countries to encourage and attract more FDI that would create opportunities and help developing countries to achieve sustainable development (Cassidy and Callaghan, 2006; Erdal and Tatoglu, 2002). The various relationships between FDI inflow and its determinants have been studied comprehensively . "
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    ABSTRACT: This study aims to evaluate the long-run and short-run relationships among foreign direct investment (FDI) inflows and their determinants in Jordan for the (1978–2012) period. The bounds testing approach is used to analyze the long-run and short-run relationships among the variables. However, the Granger causality test is utilized to explore the directions of causality among the variables. The results identify that there are long-run and short-run relationships among FDI and its determinants. Moreover, the Granger causality test recommends a deferent causal relationship among FDI and their determinants. In general, the Jordanian policy makers have to be aware to the importance of inward FDI in the Jordanian economy.
    Economic Modelling 04/2015; 46:27-35. DOI:10.1016/j.econmod.2014.12.027 · 0.70 Impact Factor
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    • "Compared to other forms of international expansion such as exporting, franchising , and licensing, FDI holds three advantages: (1) ownership advantage (derived from firm-specific resources and capabilities ); (2) internalization advantage (derived from reduction in transaction costs); and (3) location advantages (derived from country-specific attributes such as markets, resources, strategic assets, and efficiency; Habib and Zurawicki 2002; Peng and Beamish 2008). In selecting a country for investment, corporations take into consideration a multitude of factors, including natural resources, types and availability of labor, proximity to markets, sociocultural and politicoeconomic climate, legal framework, infrastructure, market size, governance, competitive intensity, transportation costs, trade and investment regime, and openness (Erdal and Tatoglu 2002; Nguyen 2009; Papadopoulos and Malhotra 2007). However, there is a dearth of research that looks into the dark side of FDI, that is, the negative consequences that host countries have to face following their decision to open up the home markets to foreign investors. "
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    ABSTRACT: Vietnam has become an attractive destination for foreign investors looking to maximize economic gains due to an increasingly young and educated population, a fast growing middle class, political stability, low labor cost, and loose operational standards. The inflow of foreign direct investment (FDI) has brought many positive outcomes to Vietnam, but its dark side is beginning to emerge. This article discusses one of the negative aspects of FDI-driven economic development in Vietnam through a high-profile, ongoing scandal involving Vedan, a Taiwanese company caught in the poisoning of the Thi Vai river. The authors provide implications for policy making and future research.
    Journal of Macromarketing 03/2012; 32(1):74-86. DOI:10.1177/0276146711423666 · 1.14 Impact Factor
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    • "FDI remains the biggest component of net resource flows to developing countries, and since 1990 it has been a growing part of total investment in these countries. The amount of FDI flowing to developing countries increased remarkably in the 1990s and now account for about 25% of global FDI (Erdal and Tatoglu, 2002). From only $15 billion in 1985 and $23.7 billion in 1990, FDI inflow to developing countries rose up to $162 billion in 2002 (Farrell, Remes, & Schulz, 2004) which is significant. "
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    ABSTRACT: This paper aims to investigate the empirically the impact of FDI on economic growth of Georgia over the period of 1997-2010. The Engle-Granger cointegration and Granger causality tests are used in order to analyse the causal relationship between FDI and economic growth. It is crucial to see the directions of causality between two variables for the policy makers to encourage private sectors. It is found that these two variables are cointegrated. Our empirical findings suggest that it is FDI that causes GDP in the case of Georgia.
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