Factors influencing foreign investment decisions of Turkish firms: Case of Azerbaijan

SUMMARY FACTORS INFLUENCING FOREIGN INVESTMENT DECISIONS OF TURKISH FIRMS: CASE OF AZERBAIJAN Keywords: Turkish Firms, Foreign Direct Investment, Azerbaijan. When the Turkish republics had gained independence after the collapse of the Soviet Union both markets and investment opportunities emerged for Turkish firms. Amongst these republics, Turkey's relations with Azerbaijan are of particular importance. In these days the number of Turkish firms operating in Azerbaijan reached to 1500. This justifies the necessity of carrying on researches about this region. In this study, what factors affect the investment decisions of Turkish firms in Azerbaijan, what sorts of problems they face and what are the possible solutions are researched. Both survey and interview methods are applied. As research findings, international agreements between Turkey and Azerbaijan, similar language and hence non-existent foreign language problem, cultural similarities between Azerbaijan and Turkey, geographic position and proximity are appeared as the most important factors. In addition, disturbing business conditions in Turkey, talented work force, developed physical infrastructure, nascent competition in Azerbaijani market are other factors considered. The results of this study imply that we have to capitalise our advantages such as cultural similarities between Turkey and Azerbaijan. Both countries citizens are able to trade easily. And both Turkish firms and Turkish Republic are aware of the importance of this marketplace. VI