Consideration of relationship between unconventional monetary policies and FDI inflows to emerging market econopmies

ABSTRACT: This study considered the effects of European Central Bank announcements of unconventional monetary policy on the foreign direct investment inflow to Turkey as an emerging country in 2002-2012. Approximately fifty announcements (events) regarding the unconventional monetary operations were determined. The eventstudy analysis was employed to evaluate the effects by using the financial development index. The study concluded that the unconventional monetary policies which announced by ECB affect FDI to Turkey in different directions. Specially, Securities Markets Programme and the extensions of the list of the collateral asset were found to be effective in increasing the foreign direct investment to Turkey among the different types of non standard policies. Keywords: unconventional monetary policy, event-study, foreign direct investment. …………………………………………………………………………………………………………………………