The effect of foreign direct investments in the form of cross-border mergers and acquisitions on the service sector in Turkey

With globalization, the internationalization process of enterprises has begun. Especially in the internationalization process that accelerated after the 1980s, companies prefer the foreign direct investment method which has both high returns and high risks. While foreign direct investments were mostly made in the manufacturing industry both in the world and in Turkey after the World War II, they turned to the services sector after the 1980s. The reason for the recent development of the services sector in Turkey is foreign direct investments. In this study, the relationship between foreign direct investments in the form of cross-border mergers and acquisitions and the development in the service sector is examined. It has been observed that the cross-border mergers and acquisitions that have increased after the 2000s in Turkey are concentrated in services such as financial services, internet and mobile services, energy and infrastructure. Cross-border mergers and acquisitions play an important role in the development of the service sector in Turkey.