The determinats of foreign direct investment in devoloping countries: example of Turkey

One of the most important phenomenons which was constituted by economically, politically and socially effective globalization process, is foreign direct investments that brings medium and long term funds and technology from the developed countries to the developing ones. Foreign direct investments (FDI), is a sustenance that supports national economies and accepted as a very important and necessary tool to fulfil economic growth and development. The main purpose of this research is to explain the specifications of the developing countries that attracts foreign direct investments, in a theoretical and empricial aspects. In the first chapter following the abstract, the definition and the grounds of FDI was explained. In the second chapter, the amounts of FDI inflows in the world and Turkey were given and the main determiners of FDI was examined. In the last chapter, after literature search, the econometric model that explains which of the economical, political and investment climate factors that determines the amount of FDI and how was created. 12 different variables of 18 developing countries which are considered to have an affect on FDI inflow in 1996-2014 of were analyzed with panel data method. At the end of the study we reached the conclusions that while control of corruption, openess to trade, technology, total labor and rule of law variables affects FDI inflows positively and total debt service, gross fixed capital formation and infrastructure variables affects FDI negatively.