Investment development approach: An assessment on Turkey(1980- 2020)

Depending on the globalization process, it is seen that foreign capital mobility has an increasing importance in the world. Capital investments constitute a large part of the capital movements taking place in the world. Depending on the increase in the economic activities of the countries, it is seen that foreign capital investments increased especially in the 1980s and 1990s. Therefore, it is seen that there is a need for theories explaining foreign direct investments. It is seen that various theories have emerged that try to explain foreign direct investments. However, it is seen that all of these developed theories are static approaches. The only dynamic approach to explain foreign direct investment is the Investment Development Pathway Approach. The Investment Development Path Approach relates the investment decisions taken by multinational companies with the economic growth levels in the country and explains the stages of these activities. Depending on the increase in the economic growth of a country, Investment can progress on the Development Path and it is seen that foreign direct investment inflows increase. In this study, the trends related to the development of Turkey's net direct investment position for the period of 1980-2020 are examined within the framework of the Investment Development Path Approach, using the graph analysis method, the regression method and the index method. As a result of the evaluations made, it can be stated that Turkey is in the position of a country in the third stage of the Investment Development Path.