Outward Turkish foreign direct investment continues

2019 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Market Economy ◽  
Direct Investment ◽  
Emerging Market ◽  
Outward Fdi ◽  
Content Type ◽  
Know How ◽  
The Past ◽  
Set Up ◽  
International Systems

Significance As an open emerging-market economy which usually runs large external deficits, Turkey has long sought to attract foreign direct investment (FDI), with varying degrees of success. At the same time, Turkish companies have been spending significant sums to acquire or set up businesses in other countries over the past 10-15 years. Impacts Turkey’s role as a source of FDI will strengthen Ankara’s influence in the countries that benefit or stand to benefit. The presence of Turkish investors in EU countries, Russia and the Middle East may help to defuse international tensions. Outward FDI may improve the competitiveness of Turkish companies through gains in know-how and integration into international systems.

The Role of Governance on Outward Foreign Direct Investment in Emerging Market Economies

2017 ◽  
pp. 77-101 ◽  
Author(s):  
Adem Gök
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Emerging Market ◽  
Emerging Market Economies ◽  
Outward Fdi ◽  
Or Efficiency ◽  
Market Economies ◽  
Physical Infrastructure ◽  
Governance Infrastructure

Emerging market economies have clear deficit in governance infrastructure and also have an increasing trend in the amount of foreign direct investment (FDI) outflows compared with advanced countries. Hence the main issue of the study is to identify the determinants leading to the increase in FDI outflows with special emphasize given to the role of governance infrastructure. Thus, the aim of the study is to analyze the effect of governance infrastructure together with other control variables on FDI outflows in emerging market economies. It is found that improvement in all measured aspects of governance infrastructure leads to increase in FDI outflows from emerging market economies and governance infrastructure, human capital and physical infrastructure are base factors for MNCs taking outward FDI decision from emerging market economies. It is also found that FDI outflows from emerging market economies are not market or efficiency seeking; instead they are resource, labor or finance seeking.

Evolving Dimensions of Indian Outward Foreign Direct Investment

2014 ◽  
Vol 1 (2) ◽  
Author(s):  
Vandana Jain
Keyword(s):  
Foreign Direct Investment ◽  
Mergers And Acquisitions ◽  
Direct Investment ◽  
East Asian ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
South East Asian Region ◽  
East Asian Region ◽  
The Past ◽  
Emerging Trends

Post liberlisation regime of 1991, India became has become a lucrative investment avenue for overseas investors. At the same time, over the past decade or so, Indian companies have become competitive at the international level and have engaged in overseas investments and mergers and acquisitions abroad. The paper, in this perspective, attempts to highlight this emerging trends and patterns of India as an overseas investor. It presents the emerging trends and patterns of Indian Outward Foreign Direct Investment (FDI) during the post liberlisation regime, and showcases the growing significance of India as an overseas investor in the South East Asian region. The paper demonstrates an analytical overview of the evolving Outward FDI from India in terms of sectoral as well as geographical composition.

scholarly journals Inward FDI spillovers and emerging multinationals’ outward FDI in two directions

2021 ◽  
Author(s):  
Renfei Gao
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
State Ownership ◽  
Outward Fdi ◽  
Host Countries ◽  
Industry Competition ◽  
The Face ◽  
Emerging Multinationals

AbstractInward foreign direct investment (IFDI) carries critical implications for emerging market multinational enterprises’ (EMNEs’) outward foreign direct investment (OFDI). While extant research provides evidence for the positive linkage between IFDI and EMNEs’ OFDI, less is known about the directionality of such OFDI—where to go. This study aims to extend the IFDI-OFDI linkage by differentiating EMNEs’ upward and downward OFDI (i.e., OFDI projects in more and less advanced host countries than their home markets). Using panel data on 1334 Chinese multinationals, I find that IFDI promotes EMNEs’ upward OFDI, but this effect is weakened by state ownership and industry competition. Moreover, my findings show that although IFDI is not related to EMNEs’ downward OFDI in general, their linkage becomes positive in the conditions of higher state ownership or weaker industry competition. This study advances our understanding of the directionality (i.e., where to go) of EMNEs’ OFDI in the face of IFDI spillovers.

Energy access and foreign direct investment in an emerging market: the Ghanaian perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ebenezer Bugri Anarfo ◽  
Abel Mawuko Agoba ◽  
Yakubu Awudu Sare ◽  
Daniel Komla Gameti
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Practical Implication ◽  
Emerging Market ◽  
Least Square ◽  
Energy Access ◽  
Macroeconomic Factors ◽  
Fdi Inflows ◽  
Content Type ◽  
The Impact

Purpose This study aims to investigate the impact of energy access on foreign direct investment (FDI) in an emerging market. Design/methodology/approach The study uses the two-stage least square instrumental variables estimation approach to compute the parameters of the model to account for any potential endogeneity and time persistence in energy access. Findings The results show that energy access significantly influences FDI inflows in Ghana. The results of the study also revealed that natural resources and macroeconomic variables such as real interest rate, gross domestic product growth rate are significant determinants of FDI inflows in Ghana. Practical implications The practical implication of this study is that there is a need for energy sector policy reforms in Ghana that would guarantee a secured and continued supply of energy to enhance energy access to boost FDI. Ghana should aim for a cost-effective, stable and environmentally friendly source of energy as an alternative to hydro energy as the main source of its power generation to promote FDI. Also, Ghana should initiate and implement policies aimed at creating an enabling and stable macroeconomic environment, as macroeconomic factors in this study are found to be drivers of FDI. Originality/value This study provides firsthand information on energy access and FDI from the Ghanaian perspective.

Foreign direct investment and stock market development

2019 ◽  
Vol 46 (1) ◽  
pp. 55-70 ◽  
Author(s):  
Athanasios Tsagkanos ◽  
Costas Siriopoulos ◽  
Konstantina Vartholomatou
Keyword(s):  
Foreign Direct Investment ◽  
Regression Model ◽  
Direct Investment ◽  
Emerging Market ◽  
Market Development ◽  
Switching Regression ◽  
Content Type ◽  
Stock Market Development ◽  
Long Run ◽  
The Relationship

Purpose The purpose of this paper is to examine two novel theories that concern the relationship between stock market development (SMD) and foreign direct investment (FDI). The authors focus on Greece that was demoted to the emerging market category in 2013–2014 in the international lists. Design/methodology/approach This study is based on the period 1988–2014 that includes the sub-periods 1988–2001 (emerging market) and 2002–2014 (developed market). The authors adopt cointegration methods examining, on the one hand, if the relationship between SMD and FDI is positive or negative and, on the other hand, if it is long run or short run. The authors complete the analysis using the Markov Switching regression model for the test of robustness. Findings The results exhibit a weak positive and symmetric long-run relationship for the full period. In the first sub-period, the relationship is strong but in the second sub-period it is not significant. The results are confirmed by the Markov Switching regression model. Originality/value The precise definition of a theoretical framework that is tested by a compact empirical methodology leads to a novel suggested policy that will upgrade the Greek market to developed market as soon as possible.

Does foreign direct investment affect economic growth? The case of Turkey

2014 ◽  
Vol 41 (6) ◽  
pp. 434-449 ◽  
Author(s):  
Birgül Cambazoglu ◽  
Hacer Simay Karaalp
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
International Trade ◽  
Direct Investment ◽  
Growth Strategy ◽  
Volume Index ◽  
Outward Fdi ◽  
Content Type ◽  
The Real ◽  
The Impact

Purpose – The purpose of this paper is to analyze the impact of inward foreign direct investment (FDI) and international trade on economic growth in Turkey for the post-liberalization period (1980-2010). Design/methodology/approach – The paper employs the vector auto-regression model with four variables: real GDP growth, real inward FDI, the real import volume index and the real export volume index. Findings – Empirical results suggest a relationship between economic growth, inward FDI and exports. Practical implications – The results derived in this paper shed light on the relationship between FDI and international trade on economic growth for Turkey, which has been applying an export-led growth strategy since 1980, and has been implementing many regulations to attract foreign capital. It is evident that although Turkey's efforts and the importance of this issue, new policies and stabilization regulations must be established for the Turkish economy. Originality/value – This study contributes to the literature in at least two aspects. First, a comparative analysis of Turkey's inward and outward FDI with respect to different country groups was analyzed. Second, apart from other studies, the effect of inward FDI and international trade on Turkey's economic growth was tested utilizing an econometric method from 1980 to 2010, which is a relatively long time period for Turkey.

scholarly journals Does foreign direct investment influence manufacturing sector growth in Middle East and North African region?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chukwuebuka Bernard Azolibe
Keyword(s):  
Foreign Direct Investment ◽  
Middle East ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
North African ◽  
Outward Fdi ◽  
African Region ◽  
Mena Region ◽  
Effective Utilization ◽  
Content Type

PurposeThis study empirically assessed the influence of foreign direct investment on the manufacturing sector growth in the Middle East and North African region using panel data of 18 countries covering the period of 1975–2017.Design/methodology/approachThe study employed Levin et al. (2002) test (LLC) and Im et al. (2003) panel unit root test. Furthermore, Kao’s cointegration test was applied to examine the long-run relationship between the variables. Both the Dynamic OLS and Fully modified OLS were used in estimating the short-run relationship.FindingsThe results of the DOLS and FMOLS indicate that both inward and outward FDI influence the manufacturing sector growth positively. This shows that much of the manufacturing sector growth in the MENA region is driven by both inward and outward FDI. Our findings made a strong new proposition that aside from the negative influence proposed by Stevens and Lipsey (1992), outward FDI could also have a positive influence on the manufacturing sector of a country through effective utilization of domestic raw materials that are produced locally for production of goods in a foreign country.Practical implicationsMENA countries should concentrate more on making policies that will encourage the effective utilization of domestic resources for outward foreign direct investment in other countries of the world as it has the capacity to boost the manufacturing sector growth. Also, policies that will attract more inflows of FDI in the region should be encouraged. Both inward and outward FDI should be considered as an integral part of MENA economic policy in order to spur the manufacturing sector growth.Originality/valuePrevious empirical studies on the relationship between FDI and manufacturing sector growth have focused much on the influence of inward FDI. Thus, very little attention has been paid to the contribution that the outward FDI makes to the growth of the manufacturing sector of the host country. Our empirical study focused on the influence of both inward and outward FDI on the manufacturing sector growth with specific emphasis on the MENA region that remains the center of attraction of inward FDI and a source of inward FDI to most nonoil producing developing and developed countries given the oil-rich nature of the region.

The Role of Governance on Outward Foreign Direct Investment in Emerging Market Economies

2020 ◽  
pp. 76-98
Author(s):  
Adem Gök
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Emerging Market ◽  
Emerging Market Economies ◽  
Outward Fdi ◽  
Or Efficiency ◽  
Market Economies ◽  
Physical Infrastructure ◽  
Governance Infrastructure

Emerging market economies have clear deficit in governance infrastructure and also have an increasing trend in the amount of foreign direct investment (FDI) outflows compared with advanced countries. Hence the main issue of the study is to identify the determinants leading to the increase in FDI outflows with special emphasize given to the role of governance infrastructure. Thus, the aim of the study is to analyze the effect of governance infrastructure together with other control variables on FDI outflows in emerging market economies. It is found that improvement in all measured aspects of governance infrastructure leads to increase in FDI outflows from emerging market economies and governance infrastructure, human capital and physical infrastructure are base factors for MNCs taking outward FDI decision from emerging market economies. It is also found that FDI outflows from emerging market economies are not market or efficiency seeking; instead they are resource, labor or finance seeking.

Motives for foreign direct investment: a view from emerging market multinationals

2015 ◽  
Vol 23 (1) ◽  
pp. 77-86 ◽  
Author(s):  
Pavida Pananond
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Global Value Chains ◽  
Value Chains ◽  
Content Type ◽  
Emerging Market Multinationals ◽  
Emerging Market Firms ◽  
Selection Of

Purpose – The purpose of this paper explains how the framework on motives of foreign direct investment (FDI) needs to be rethought when analyzing emerging market multinational enterprises (EMNEs). It argues that the weak position of emerging market firms and their interdependent relationship with lead firms in global value chains (GVCs) modify the selection of internationalization motives. Design/methodology/approach – The arguments are illustrated through a critical review of the literature on FDI motives and a discussion on how the literature can be extended from looking through the lens of emerging market multinationals, particularly those with early development as suppliers in global value chains. Findings – The weak position of emerging market firms and their interdependent relationship with lead firms in global value chains modify the selection of internationalization motives on two aspects. First, internationalization decisions of EMNEs in GVCs are not undertaken in an independent manner. Rather, decisions are influenced by the initial position along the value chain and the dynamic relationships that these EMNEs have with lead firms. Second, the selection of FDI motives of these EMNEs reflects both their international expansion strategy and the upgrading effort they wish to pursue to undertake higher value-adding activities along the GVCs. Originality/value – These implications addressed in this paper add more nuances to the interpretation of FDI motives. Previously viewed mainly from the perspective of lead firms, FDI decisions are considered as independent alternatives that multinational enterprises (MNEs) can undertake to fulfill their internationalization strategy. Revisiting the FDI motives from the perspective of EMNEs reveals further insights on the interdependent nature of their internationalization, particularly reflecting the weaker position of EMNEs and their interdependent relationship with lead firms in their industry.

China's Latin America funding brings calculated risk

2015 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Direct Investment ◽  
Financial Flows ◽  
Content Type ◽  
Chinese Investment ◽  
Political Dynamics ◽  
The Past ◽  
Political Risks ◽  
Calculated Risk

Subject Chinese engagement in Latin America. Significance While Chinese investment in Latin America has grown rapidly over the past decade, most financial flows are sovereign loans, mainly to Argentina, Ecuador and Venezuela. Foreign direct investment (FDI), by contrast, remains comparatively small. In both cases, most financing has targeted natural resource sectors, raising concerns over excessive Chinese control. China's objectives are diverse, varying across sectors and countries, and increasingly attuned to local political dynamics, as well as the risks inherent in some of its regional deals. Impacts Loans will continue to outstrip FDI in China's financing for the region. Investor-unfriendly policies will increase some countries' dependence on Chinese finance. However, Chinese lending will not be immune to financial and political risks.

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